Warsh was one of Trump’s top picks for Fed chair during his first term, before he chose Jerome Powell.
President Donald Trump said on Jan. 30 that former Federal Reserve Governor Kevin Warsh will be the next head of the U.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 Jan. 30 post on Truth Social.
“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. Congratulations Kevin!”
While the new chair will be just one vote, Trump believes other officials will change their minds and support cutting interest rates.
“If they respect the Fed chairman, they’ll be with us all the way,” Trump told reporters on Jan. 29 during the premiere of “Melania,” the film about first lady Melania Trump.
Warsh worked as special assistant to the president for economic policy during the Bush administration, from 2002 to 2006. He was also the executive secretary of the National Economic Council.
Described as a hard-money hawk, Warsh was nominated to the Federal Reserve Board of Governors in January 2006 and served under Fed Chair Ben Bernanke. He stepped down from his position in early 2011.
Warsh was also one of Trump’s top picks for Fed chair during his first term, before he chose Jerome Powell.
The search for Powell’s replacement started this past fall with 11 candidates. The list narrowed to a handful of contenders, with the final four being Warsh, National Economic Council Director Kevin Hassett, BlackRock executive Rick Rieder, and Fed Gov. Christopher Waller.
For weeks, prediction markets had overwhelmingly expected Hassett to be named as Powell’s successor. However, Warsh catapulted to the top when Trump suggested he could not have Hassett leave the White House. Then, following flattering comments about the Wall Street veteran at the World Economic Forum, Rieder rocketed to the top.
After the president revealed to the press that he would announce his pick on Jan. 30, Warsh became the odds-on favorite.
Warsh has expressed support for the administration’s economic agenda, suggesting the Fed should lower interest rates and shrink the balance sheet.
By Andrew Moran
