Breaking: President Trump Taps Fed Reformer Kevin Warsh to Replace Jerome Powell

President Donald J. Trump, the current President of the United States, announced Friday that he is nominating longtime Federal Reserve critic Kevin Warsh to succeed Jerome Powell as chairman of the Federal Reserve Board of Governors — a move signaling a potential shift in U.S. monetary policy and renewed scrutiny of the central bank’s leadership.

“I am pleased to announce that I am nominating Kevin Warsh to be the CHAIRMAN OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM,” Trump wrote on Truth Social.

Warsh, a former Fed governor and outspoken advocate for reforming the institution, has long argued that the Federal Reserve has lost credibility under its current leadership. Market observers say his nomination aligns closely with President Trump’s economic vision, particularly his push for lower interest rates to stimulate growth — a stance Powell has repeatedly resisted.

David Bahnsen, chief investment officer at The Bahnsen Group, said Warsh brings confidence to financial markets, according to CNBC.

“There was no person who was going to get this job who wasn’t going to be cutting rates in the short term. However, I believe longer term he will be a credible candidate,” Bahnsen said.

Bahnsen’s comments underscore the broader context surrounding the nomination: President Trump’s frustration with Powell-era monetary policy and his belief that high interest rates have unnecessarily constrained economic expansion.

Warsh has been blunt in his criticism of the Federal Reserve’s direction. In July of last year, he called for “regime change” at the central bank.

“The credibility deficit lies with the incumbents that are at the Fed, in my view,” he said.

Before assuming the role, Warsh’s nomination must be confirmed by the Senate, where early reactions have reflected both support and political tension.

Sen. Tim Scott (R-SC), chairman of the Senate Banking Committee, praised Warsh’s qualifications and echoed President Trump’s emphasis on accountability at the Fed.

″The Federal Reserve’s decisions touch every American household, from mortgage rates to retirement savings, and President Trump has been clear that bringing accountability and credibility to the Federal Reserve is a priority, and his nomination of Kevin Warsh reflects that focus,” Scott said.

However, not all Republicans are on board — at least for now. Sen. Thom Tillis (R-NC), a frequent critic of President Trump, said he will oppose the nomination until a Department of Justice investigation involving Powell is resolved. The inquiry reportedly centers on costs associated with the Federal Reserve’s new building project.

“Kevin Warsh is a qualified nominee with a deep understanding of monetary policy. However, the Department of Justice continues to pursue a criminal investigation into Chairman Jerome Powell based on committee testimony that no reasonable person could construe as possessing criminal intent,” Tillis said.

“My position has not changed: I will oppose the confirmation of any Federal Reserve nominee, including for the position of Chairman, until the DOJ’s inquiry into Chairman Powell is fully and transparently resolved,” he added.

In his Truth Social announcement, President Trump outlined Warsh’s extensive credentials, highlighting his academic, financial, and public-service background.

Trump noted that Warsh “currently serves as the Shepard Family Distinguished Visiting Fellow in Economics at the Hoover Institution, and Lecturer at the Stanford Graduate School of Business.”

“He is a Partner of Stanley Druckenmiller at Duquesne Family Office LLC. Kevin received his A.B. from Stanford University, and J.D. from Harvard Law School. He has conducted extensive research in the field of Economics and Finance. Kevin issued an Independent Report to the Bank of England proposing reforms in the conduct of Monetary Policy in the United Kingdom. Parliament adopted the Report’s recommendations,” Trump wrote.

The president also emphasized Warsh’s experience inside the Federal Reserve itself.

“Kevin Warsh became the youngest Fed Governor, ever, at 35, and served as a Member of the Board of Governors of the Federal Reserve System from 2006 until 2011, as the Federal Reserve’s Representative to the Group of Twenty (G-20), and as the Board’s Emissary to the Emerging and Advanced Economies in Asia. In addition, he was Administrative Governor, managing and overseeing the Board’s operations, personnel, and financial performance.”

Trump added that Warsh previously served in the George W. Bush White House, writing:

“Prior to his appointment to the Board, from 2002 until 2006, Kevin served as Special Assistant to the President for Economic Policy, and Executive Secretary of the White House National Economic Council. Previously, Kevin was a member of theMergers & Acquisitions Department at Morgan Stanley & Co., in New York, serving as Vice President and Executive Director.”

Concluding his announcement, President Trump offered high praise for his nominee.

“I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best. On top of everything else, he is ‘central casting,’ and he will never let you down,” Trump said.

According to The Wall Street Journal, Warsh emerged from a shortlist of four finalists that also included Rick Rieder of BlackRock, White House National Economic Council Director Kevin Hassett, and current Fed Governor Christopher Waller, whom Trump appointed in 2020.