Former President Donald trump has nominated Kevin Warsh to become teh next chair of the Federal Reserve, setting the stage for a potential overhaul of monetary policy [[1]]. The move,announced Friday,comes as Trump continues to publicly challenge the Fed’s independence and advocate for lower interest rates,following appointments to the board and attempts to remove current members [[2]]. Warsh, a former Fed governor, previously considered for the role during trump’s first term, now faces an uncertain path to confirmation amid heightened scrutiny.
Former President Donald Trump announced on Friday, January 30, 2026, his intention to nominate economist and banker Kevin Warsh as the next chair of the Federal Reserve, replacing current Chair Jerome Powell. The move signals a potential shift in monetary policy and has already drawn scrutiny regarding the central bank’s independence.
“I am pleased to announce that I am nominating Kevin Warsh,” Trump stated on his Truth Social platform, highlighting Warsh’s experience as the youngest-ever governor of the Federal Reserve, serving from 2006 to 2011. The appointment, if confirmed by the Senate, could significantly alter the trajectory of U.S. economic policy.
“I’ve known Kevin for a long time, and I have no doubt he will go down in history as one of the GREAT Fed Chairs, maybe the best!” Trump added, asserting that Warsh “has the perfect profile” and “will never disappoint.”
Trump emphasized Warsh’s early career achievements, noting his appointment as a Fed governor at age 35 and his prior role as an economic advisor to President George W. Bush. Warsh is currently affiliated with the Hoover Institution, a prominent conservative think tank in California.
Concerns Raised Over Fed Independence
Warsh, 55, was previously considered by Trump for the Fed chairmanship during his first term, ultimately losing out to Powell in 2017. His renewed nomination comes amid growing concerns about political interference in the Federal Reserve’s decision-making process.
Should he be confirmed by the Senate, Warsh would take the helm of a Federal Reserve facing questions about its independence, following Trump’s repeated calls since returning to the White House in January 2025 for more aggressive and rapid interest rate cuts. The appointment underscores the ongoing tension between the White House and the central bank regarding monetary policy.
In September, Trump appointed Stephen Miran to the board of governors that comprises the Federal Open Market Committee (FOMC), the body responsible for setting interest rates. His administration has also initiated efforts to force the departure of Lisa Cook, another member of the FOMC, in an unprecedented move.
Trump has been publicly critical of Powell, even launching an investigation into cost overruns related to renovations at the Federal Reserve building, while simultaneously urging for a faster pace of rate reductions, which began in September 2024.
Powell assumed leadership of the central bank in February 2018 and was retained in the position by President Joe Biden (2021-2025), navigating crises such as the COVID-19 pandemic and periods of historically high inflation.
Warsh, who served as a governor from 2002 to 2011, previously expressed caution regarding inflation, which currently remains above the Fed’s 2% target. However, more recently, he has indicated a preference for lower interest rates than those currently in place.
Warsh will face scrutiny during Senate confirmation hearings regarding his ability to maintain independence from Trump and adhere to the Fed’s mandate of controlling inflation, maximizing employment, and fostering economic growth. His responses will be closely watched by markets and economists alike.
CP (afp, rtr)
