Kevin Warsh was nominated by President Donald Trump to serve as chairman of the Board of Governors of the Federal Reserve System, the president announced on Truth Social.
Trump praised Warsh’s career record and said he had known him a long time, calling him “central casting” and predicting he would be a great Fed chairman.
If confirmed, Warsh would replace Jerome Powell, who was appointed in 2017 and is expected to leave the chair role in May, though Powell has the option to serve out the remaining two years of his governor’s term.
Markets Reaction And Confirmation Outlook
Market reaction to the nomination was muted, with the three major US stock indexes opening down about 0.1% to 0.3%, while gold fell 4.4% to $5,117 per ounce and silver was more than 13% lower near $100 per ounce, the dollar index gained almost 0.5% and the 10-year Treasury yield rose to 4.24%, as reported in the coverage.
The nomination follows a selection process led by Treasury Secretary Scott Bessent, who narrowed an initial field of 11 candidates that began in August down to five and then four, with the final group believed to include Warsh, Kevin Hassett, Christopher Waller and Rick Rieder.
Consent in the Senate could face obstacles after Chair Powell disclosed that the Fed received grand jury subpoenas from the Department of Justice on January 11, a development that prompted concern across politics and markets.
North Carolina Republican Senator Thom Tillis said he will oppose any Fed nominees from the administration until the DOJ inquiry into Powell is fully and transparently resolved, posting his position on X.
Warsh, 55, is a former Morgan Stanley executive who served as a Fed governor after a Bush administration nomination and later advised that administration on economic matters, background that has reassured some market observers about his credibility.
Warsh has in recent months voiced support for what he described as a need for regime change in monetary policy, telling CNBC that the Fed’s past inflation “miss” has motivated public pressure for a change in the conduct of policy.
Other reactions in the financial press noted his market standing, with David Bahnsen of The Bahnsen Group saying on CNBC that Warsh has the respect of markets and would likely be seen as credible over time.
The White House response to reporting about the process drew a terse denial from spokesman Kush Desai, who called early reporting on the nomination process a waste of time, while Trump later said Kevin Hassett had been considered but remained at the White House team.
