Breaking: Trump Selects Prominent Federal Reserve Critic to Replace Jerome Powell as Its Chair

President Donald J. Trump on Friday formally announced his pick to replace Jerome Powell as chairman of the Federal Reserve Board of Governors, tapping former Fed governor Kevin Warsh in a move aimed at restoring credibility and accountability to the nation’s central bank.

“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 in a Truth Social post unveiling the decision.

Warsh, a longtime critic of the Federal Reserve’s recent direction, is widely viewed as aligned with Trump’s push for a more growth-oriented monetary policy. David Bahnsen, chief investment officer of The Bahnsen Group, said the nomination would be well received by investors and financial institutions.

“Warsh has the respect and credibility of the financial markets,” Bahnsen said, 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 added.

Bahnsen pointed to President Trump’s long-standing desire to lower interest rates to accelerate economic growth — a position that frequently put him at odds with Powell during his tenure at the Fed.

Warsh himself has openly argued that the Federal Reserve needs a fundamental shift in leadership and philosophy. Last year, he bluntly called for a shake-up at the institution.

“Regime change,” Warsh said of the Fed.

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

The nomination now heads to the U.S. Senate for confirmation, where it is expected to draw significant attention. Senate Banking Committee Chairman Tim Scott, a Republican from South Carolina, praised Trump’s choice and highlighted the stakes involved.

Warsh brings a “deep knowledge of markets and monetary policy that will be essential in this role,” Scott said.

″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 added.

Not all Republicans are on board, however. Sen. Thom Tillis of North Carolina, a frequent Trump critic, said he will oppose the nomination until a Department of Justice investigation involving Powell is resolved. The probe is reportedly tied to testimony concerning cost overruns on a new Federal Reserve 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 announcement, President Trump highlighted Warsh’s extensive academic and professional credentials.

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

“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 continued.

Trump also emphasized Warsh’s prior experience inside the Federal Reserve and the White House.

“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 wrote.

“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 the Mergers & Acquisitions Department at Morgan Stanley & Co., in New York, serving as Vice President and Executive Director,” he added.

Trump concluded with a characteristically confident endorsement of 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,” the president 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.