Trump Nominates Kevin Warsh To Replace Powell As Fed Chair

President Donald Trump ended months of speculation Friday morning by announcing former Fed Governor Kevin Warsh as his pick for the next Federal Reserve chair. If confirmed, Warsh would succeed current Fed Chair Jerome Powell when his term ends in May.

Trump announced Warsh as his nominee in a Truth Social post. After listing his business accomplishments, Trump wrote: “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. Congratulations Kevin!”

Trump told reporters Thursday night that he was going to announce a new Fed chair this morning and the 10-year yield went higher on speculation that Warsh was the choice.

HousingWire Lead Analyst Logan Mohtashami said, “The financial community could be puzzled because of Kevin Warsh’s past views on monetary policy, but I believe he has given up a lot of his old views and convinced Trump he would try to get rates as low as possible to get this position. His views could change once Trump is out of office, but as long as Trump is president, I believe we don’t have to worry about the pre-Trump Kevin Warsh. The 10-year yield went higher overnight but has come down a little from those highs.”

Warsh served as a Fed Governor from 2006-2011 and after the 2008 financial crisis he acted as the Fed’s primary liaison to Wall Street. He is currently a partner of Stanley Druckenmiller at Duquesne Family Office LLC and the Shepard Family Distinguished Visiting Fellow in Economics at Stanford University’s Hoover Institution. Warsh received his A.B. from Stanford University, and J.D. from Harvard Law School.

In his second term, President Trump and his administration have run a full-court press against Powell and several Fed governors to lower interest rates. Last week the Supreme Court heard oral arguments in the case against Fed Governor Lisa Cook, whom Trump has tried to fire, accusing her of committing mortgage fraud by allegedly misrepresenting occupancy requirements on loans for two properties. Despite pressure from Trump, the Fed left rates unchanged last week after three consecutive cuts in 2025.

The process to becoming Fed Chair starts with Warsh succeeding Fed Governor Stephen Miran on Feb. 1. Miran filled the seat after Adriana Kugler’s resignation in August 2025.

Warsh could face a tough Senate confirmation after the Justice Department issued grand jury subpoenas as part of a probe into Fed Chair Jerome Powell, sparking bipartisan criticism. Senators Thom Tillis (R-N.C.) and Elizabeth Warren (D-Mass.) accused President Trump of using the investigation to pressure Powell to resign and assert political control over the central bank.

Tillis, a Republican member of the Senate Banking Committee, has pledged to block any Fed nominees until the Justice Department completes its probe. While Powell’s term as chair expires in May, he could remain on the Fed board through 2028 if the Senate refuses to confirm Warsh.

In addition to Warsh, Trump had considered three other final candidates to lead the Federal Reserve: National Economic Council Director Kevin Hassett, Federal Reserve Gov. Christopher Waller, and BlackRock executive Rick Rieder.