Trump Taps Kevin Warsh to Lead Federal Reserve, Succeeding Jerome Powell

Kuala Lumpur, El Sky News. — In a move that signals a major shift for U.S. monetary policy, President Donald Trump officially nominated Kevin Warsh on January 30, 2026, to serve as the next Chair of the Federal Reserve. If confirmed by the Senate, Warsh will replace Jerome Powell, whose term ends in May.

Trump announced the decision via Truth Social, praising Warsh as a “leader of unmatched brilliance” who fits the “central casting” mold for the role. The President expressed high expectations that Warsh would foster an era of economic growth and price stability, subtly hinting at his long-standing desire for more aggressive interest rate cuts.

A Return to the Fed

Warsh is a familiar face within the halls of the central bank. His resume includes:

• Youngest Governor: Appointed by George W. Bush in 2006, Warsh became the youngest Fed Governor in history at age 35.
• Crisis Management: He played a pivotal role during the 2008 financial crisis, serving as a vital bridge between the Fed and Wall Street.
• Academic Roots: Most recently, he served as a distinguished fellow at the Hoover Institution and a close advisor to billionaire investor Stanley Druckenmiller.

Market Reaction and Policy Shifts

While traditionally viewed as a “hawk” (someone focused on keeping inflation low), Warsh has recently aligned himself with Trump’s critiques of the current Fed leadership. Analysts expect Warsh to be more open to deregulation and potentially more responsive to the administration’s calls for a weaker dollar to boost exports.

However, his path to the chairmanship isn’t without hurdles.

“Kevin Warsh represents the interests of Wall Street over Main Street,” stated Senator Elizabeth Warren, signaling a contentious confirmation battle ahead from the Democratic side.

The Road to Confirmation

The nomination comes at a sensitive time. Some Republican lawmakers, including Senator Thom Tillis, have expressed hesitation about proceeding with a new appointment while the Department of Justice continues its criminal investigation into Jerome Powell.

Despite the friction, Warsh is widely considered the “safe” pick for markets compared to more unconventional candidates previously discussed, such as Kevin Hassett or Rick Rieder.