Trump Nominates Kevin Warsh as Federal Reserve Chair, Promising Regime Change at the Central Bank

President Donald Trump on Thursday nominated Kevin Warsh to serve as the next chairman of the Federal Reserve, selecting a well-connected former Fed governor who has promised sweeping reforms at the world's most influential central bank while pledging to preserve its independence on monetary policy.

If confirmed by the Senate, Warsh would succeed Jerome Powell, whose term ends in May, inheriting an institution that has faced relentless criticism from Trump over interest rate decisions [1].

A Résumé Built for the Role

Warsh, 55, brings credentials that few candidates could match. A Stanford and Harvard Law graduate, he served as the youngest-ever Federal Reserve governor from 2006 to 2011, helping steer the institution through the 2008 financial crisis. Before that, he was a Morgan Stanley executive and top economic adviser in the George W. Bush White House [2].

"He's got the whole package," Trump said Thursday afternoon. On Truth Social, he added: "He will go down as one of the great Fed chairmen, maybe the best."

The nomination drew endorsements from across the political spectrum. JPMorgan Chase CEO Jamie Dimon called Warsh "a highly respected and experienced leader" who acts "with integrity and a dedication to making our country better." Canadian Prime Minister Mark Carney described him as "a fantastic choice to lead the world's most important central bank at this crucial time" [1].

The Wall Street Journal editorial board went further, declaring the selection "President Trump's best second-term appointment" [1].

The Independence Question

Behind the bipartisan acclaim lies a harder question: which Kevin Warsh will show up?

David Wessel, director of the Hutchins Center on Fiscal and Monetary Policy at the Brookings Institution, noted that Warsh has shifted his stance over the years. "He was what is generally called a hawk, an inflation fighter, when he was on the board," Wessel told PBS NewsHour. "But in recent years, particularly as he's been campaigning, auditioning, if you will, to be Fed Chair, he's become more in sync with President Trump" [2].

Warsh has been openly critical of the Fed's recent performance. "I think the Fed has done a very good job of blaming others for their mistakes," he said last summer. But he has also insisted that "the independent operations in the conduct of monetary policy is essential" — drawing a line between policy independence and broader institutional accountability [2].

Trump has repeatedly called for dramatic rate cuts — as much as two full percentage points — a position Wessel described as "lunacy" that he doubts Warsh would pursue. The real test, analysts say, will come in 2027 and 2028, when economic conditions may force Warsh to choose between what the data demands and what the president wants.

What Changes Under Warsh

Warsh has signaled several priorities that could reshape how the Fed operates:

• Narrower focus: He wants the Fed to concentrate solely on monetary policy, moving away from involvement in climate risk, inequality, and other areas he considers outside the central bank's mandate
• Deregulation: He's expected to align with the administration's push to ease bank regulations
• AI-driven growth: Warsh believes artificial intelligence will boost productivity enough to allow faster economic growth than most economists currently project, potentially justifying lower interest rates
• Institutional reform: His calls for "regime change" suggest significant changes to Fed staffing and internal processes, though specifics remain vague

Markets and the Confirmation Path

Financial markets have been pricing in one or two rate cuts later this year, and analysts expect Warsh could deliver on that timeline. Senate Banking Committee Chairman Tim Scott pledged a "thoughtful, timely confirmation process," and the nomination has garnered support from lawmakers in both parties [1].

Warsh would not preside over a Fed meeting until June at the earliest. By then, the economic landscape could look substantially different — shaped by the administration's trade policies, immigration enforcement decisions, and the ongoing impact of AI investment on growth.

As Wessel put it: "The world will watch whether Kevin Warsh does the same thing" as his predecessors in standing up to political pressure. "And if they think he isn't, then we're going to have to pay more to borrow. And we're the world's largest borrower" [2].