Kevin Warsh is set to take the helm as the new chair of the Federal Reserve.
President Donald Trump announced this significant appointment on Friday morning, marking a pivotal leadership change following Jerome Powell’s tenure.
In a message on Truth Social, Trump highlighted Warsh’s qualifications, noting his experience as a Federal Reserve Board Governor from 2006 to 2011.
Trump confidently added, “In addition to his credentials, he fits the ‘central casting’ mold and is someone who will not disappoint.”
Jerome Powell’s term officially ends on May 15, 2026. He will preside over two more policy meetings before concluding his service.
Powell’s tenure has been marked by a challenging year-and-a-half of disagreements and public disputes with the president regarding interest rate decisions.
At the premiere of First Lady Melania’s film at the Trump-Kennedy Center on Thursday night, Trump was excited to preview the impending announcement for his pick to head the Fed for the next four years.
He said on Thursday night that he had made up his mind and that his pick was ‘somebody that is very respected, somebody that’s known to everybody in the financial world.’
‘A lot of people think that this is somebody that could have been there a few years ago,’ he added, sparking speculation it could be Warsh considering he was a finalist for the role in 2017.
President Donald Trump announced early on Friday, January 30, 2026 that Kevin Warsh, a former governor of the US Federal Reserve, is his pick for the next Chairman of the Fed
It comes after a year-long public feud with current Chairman Jerome Powell (right), whom Trump has called names and accused of costing the US billions for refusing to cave to his pressure to lower interest rates
Currently, the 55-year-old is a scholar and lecturer at Stanford, a member of the international Group of 30 and a member of the Panel of Economic Advisers at the Congressional Budget Office.
At 35 he became the youngest-ever person to get a seat on the Board of Governors at the Federal Reserve.
Warsh is an inflation hawk, which could result in fewer or smaller rate cuts than markets initially are bracing for under a more Trump-aligned Fed chair. This could keep borrowing costs elevated and keep interest rates higher-than-expected.
As the odds of his nomination rose, market reactions suggest investors expect rates to remain higher.
He is likely to prioritize controlling inflation through tighter monetary policy, such as slower interest rate cuts or shrinking the Fed’s balance sheet.
Some analysts speculate Warsh’s nomination is a welcomed one due to his Fed experience and Wall Street’s view that he wouldn’t always do Trump’s bidding.
But that doesn’t mean he’s a shoe-in.
Republican Senator Thom Tillis of North Carolina, though agreeing with Warsh’s qualifications for the role, floated blocking any nominee until the investigation into Powell is done.
The Justice Department has an ongoing criminal investigation into Powell regarding his June 2025 congressional testimony about a $2.5 billion renovation of Fed’s headquarters and whether he lied about project costs.
‘Protecting the independence of the Federal Reserve from political interference or legal intimidation is non-negotiable,’ the retiring senator wrote on X.
‘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 insisted.
Current Federal Reserve Chairman Jerome Powell’s term is up in May 2026
Trump has tried, and failed, to influence Powell on how to change rates at the Fed.
He has frequently attacked the Chairman on social media, calling him ‘stupid,’ a ‘jerk,’ a ‘major loser,’ a ‘knucklehead’ and ‘Mr. Too Late.’
Most recently the president called Powell a ‘moron’ this month for holding interest rates steady and claiming he is costing the US ‘hundreds of billions’ in interest and expenses.
Along with Warsh, the other consistently mentioned contenders were White House National Economic Council Director Kevin Hassett, current Fed Governor Christopher Waller and BlackRock executive Rick Rieder.
Hassett, as a longtime Trump economic adviser, was largely seen as a top-two pick along with Warsh.
