Trump Picks Kevin Warsh as Federal Reserve Chair Nominee

President Donald Trump said Friday he is nominating Kevin Warsh to be the next chair of the Federal Reserve, capping months of speculation over who will assume leadership over the nation’s central bank.

If confirmed, Warsh would replace current Fed Chair Jerome Powell, who has drawn Trump’s ire for refusing to slash interest rates on the president’s demand.

“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,” Trump posted on Truth Social.

Trump has repeatedly questioned the independence of the Fed, making clear he expects his pick to cut rates.

Warsh is a fellow at Stanford University’s conservative Hoover Institution and a partner at the private investment firm Duquesne Family Office.

He soared to the top spot in prediction markets late Thursday after Trump said his choice “won’t be too surprising” at the premiere of first lady Melania Trump’s documentary film.

Trump doubled down on his criticism of Powell and demands for lower interest rates Thursday morning.

“Jerome ‘Too Late’ Powell again refused to cut interest rates, even though he has absolutely no reason to keep them so high. He is hurting our Country, and its National Security,” Trump wrote in a Truth Social post. “WE SHOULD BE PAYING LOWER INTEREST RATES THAN ANY OTHER COUNTRY IN THE WORLD!”

The stakes are high for Warsh.

Earlier this month, Powell stunned watchers when he announced that he is the subject of a criminal investigation by the Justice Department, which he says is political pressure to comply with Trump’s demands. The probe is related to the multibillion-dollar renovation of historic Fed office buildings.

“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions, or whether instead monetary policy will be set by political pressure or intimidation,” Powell said in a video statement.

Multiple Republican senators quickly rebuked the criminal probe and stressed the importance of the central bank’s independence from political pressure.

“It’s clear the administration’s investigation is nothing more than an attempt at coercion,” Sen. Lisa Murkowski wrote on X earlier this month.

Murkowski and Sen. Thom Tillis said they would block confirmation of a Federal Reserve chair nominee until the legal matters involving Powell are resolved.

During his speech at the World Economic Forum in Davos, Switzerland, last week, Trump publicly mused that his Fed pick could depart from his wishes once confirmed.

“They’re saying everything I want to hear, and then they get the job, they’re locked in for six years. They get the job, and all of a sudden, ‘Let’s raise rates a little bit,’” Trump said from the Davos stage.

For his part, Powell offered words of advice to his successor at a press conference Wednesday.

“Stay out of elected politics. Don’t get pulled into elected politics. Don’t do it,” Powell said.