President Trump Nominates Kevin Warsh as Next Federal Reserve Chair

Washington, D.C. — January 30, 2026 — In a move that caps months of intense speculation and marks one of his most significant economic appointments of his second term, President Donald Trump announced Friday morning that he is nominating former Federal Reserve Governor Kevin Warsh to serve as the next chair of the U.S. central bank.

The announcement, made via a post on Truth Social, ends a prolonged search to replace current Fed Chair Jerome Powell, whose term as chair concludes in May. Trump, who appointed Powell during his first term in 2017, has repeatedly criticized the incumbent for not slashing interest rates aggressively enough, even as the Fed has navigated post-pandemic inflation and economic recovery.

"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," Trump wrote in his announcement. "On top of everything else, he is 'central casting,' and he will never let you down. Congratulations Kevin!"

Warsh, 55, served as a Fed governor from 2006 to 2011 under then-Chair Ben Bernanke, a period that included the global financial crisis. During his tenure, he acted as a key liaison to financial markets. After leaving the Fed, Warsh became a vocal critic of the institution, advocating for significant reforms—including a shift away from heavy reliance on data-driven models and balance sheet expansion—and calling for a "regime change" in monetary policy. He has long favored lower interest rates, aligning closely with Trump's public demands for borrowing costs to drop sharply, potentially to as low as 1%.

The nomination positions Warsh to lead the world's most influential central bank at a time when the Trump administration has sought greater influence over its decisions. Markets reacted with a slight dip in early trading, reflecting uncertainty about potential policy shifts, though some analysts described Warsh as a "relatively safe" choice compared to more unconventional contenders.

Warsh edged out other finalists, including National Economic Council Director Kevin Hassett, current Fed Governor Christopher Waller, and BlackRock executive Rick Rieder. Trump praised the alternatives in follow-up posts, noting they "would have been outstanding" and have bright futures in his administration.

If confirmed by the Senate, Warsh would also need to be reappointed or nominated to the Fed Board of Governors, as his prior term expired years ago. The confirmation process is expected to draw scrutiny, particularly regarding the Fed's independence amid ongoing tensions. Some Republican senators, including Thom Tillis of North Carolina, have signaled potential resistance tied to unrelated probes involving Powell.Warsh's personal connections have also drawn attention: He is married to Jane Lauder, part of the Estée Lauder cosmetics family, and his father-in-law, Ronald Lauder, is a prominent Republican donor with ties to Trump's circle.

The Hoover Institution, where Warsh serves as a distinguished visiting fellow, quickly congratulated him, calling him a "dedicated public servant with the intellect, experience, and judgment to lead the Federal Reserve."

As the nomination heads to the Senate Banking Committee—chaired by Sen. Tim Scott (R-S.C.), who praised Warsh's expertise—lawmakers from both parties are preparing for hearings that could test the boundaries of central bank autonomy in an era of heightened political pressure on monetary policy.

This is a developing story. More updates as reactions from markets, lawmakers, and economic observers continue to roll in.

17GEN4.com