Donald Trump Chooses Kevin Warsh As Next Fed Chair, Set To Replace Jerome Powell; Who Is Warsh?

United States President Donald Trump on Friday, January 30, said that he will pick former Federal Reserve official Kevin Warsh as the next chair of the Federal Reserve.

Fifty-five-year-old Kevin Warsh would replace current chair Jerome Powell when his term expires on May. His appointment could be a major move for Trump to assert his control over the Fed, reported AP. The move could also result in a sharp movement in the global stock market and the precious commodities market as well.

"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," read a social media post by Trump on Truth Social.

While Donald Trump selected Powell in 2017 as US Fed chair, he criticised Powell throughout 2024 for not reducing interest rates as fast as Trump wanted.

Who is Kevin Warsh?

Kevin Warsh, aged 55, had previously served on the Federal Reserve Board from 2006 to 2011. He became the youngest governor in the institution's history when he was appointed at the age of 35. The current plan is for Warsh first to fill a board seat that Stephen Miran has been occupying temporarily, before Trump elevates Warsh to chair once Powell's term concludes in May.

Before joining the Federal Reserve Board in 2006, Warsh served as an economic aide in George W. Bush's administration and worked as an investment banker at Morgan Stanley. During the 2008-09 financial crisis, Warsh collaborated closely with then-Chair Ben Bernanke on the central bank's emergency response efforts.

US Federal Reserve

The chair of the Federal Reserve is widely viewed as one of the world's most influential economic figures, with responsibility for managing US inflation while supporting maximum employment. Fed decisions affect borrowing costs across the economy, from mortgages and car loans to credit cards, and the institution also serves as the main regulator of the country's banking system.

US Fed Reserve Announcement

Donald Trump's announcement about Kevin Warsh came days after the US Federal Reserve decided to keep key fund interest rates unchanged. The US Federal Reserve kept the fund interest rates unchanged to 3.5% to 3.75%, despite inflation rate staying above its target of 2%. Fed's chair Jerome Powell signalled that policy could ease once tariffs risk recede.

In its statement, FOMC said, "Available indicators suggest that economic activity has been expanding at a solid pace. Job gains have remained low, and the unemployment rate has shown some signs of stabilization. Inflation remains somewhat elevated."