Trump Nominates Kevin Warsh as Next Fed Chair: Key Details and What’s Next

President Donald Trump has chosen former Federal Reserve governor Kevin Warsh as his nominee for the next Fed Chair. 

The announcement came on January 30, 2026, after months of speculation about who would replace current chair Jerome Powell. 

If he be appointed by the Senate, Warsh would assume the head of the U.S. central bank when Powell retires in May

The nomination itself is a sign of change in the leadership of the Federal Reserve in the background of continuous conflicts between the White House and the current team of the central bank. Trump has criticised Powell on numerous occasions as being slow to reduce interest rates.

Background on Kevin Warsh

Kevin Warsh, 55, is a seasoned economist with previous experience as a Fed governor from 2006 to 2011. During that period, he played a major role in policy discussions during and after the global financial crisis. 

Later on, Warsh would work in think tanks and the private sector and finally make his way back in the limelight of the public with this nomination.

Warsh has been a Hoover fellow and a lecturer at Stanford University. He is also an experienced person in Wall Street, having previously held a job at the Morgan Stanley and served as an advisor in the George W. Bush administration.

Warsh is viewed by many analysts as more of a Trump type of economic preference especially with regard to the interest rate policy. He has reviled the present Fed leadership, as well as proposing reforms in how the central bank conducts monetary policy. 

What the Nomination Means for the Fed

If confirmed, Warsh will take the helm of the Fed at a time of economic uncertainty. The central bank has to strike a balance between price stability, employment growth, and long-term financial situation. 

The markets have already responded to the news, and some asset prices have been sharply traded on anticipation of changes in monetary policy.

According to Trump, Warsh is among the GREAT Fed Chairmen and is very experienced and capable of leadership. The president has mentioned that Warsh will introduce a sound and steady leadership in the institution.

Another, more general political issue raised by the nomination of Warsh is the independence of the Federal Reserve. Naturally, Trump has been on record advocating low interest rates, an idea that Powell has opposed throughout his rule. The nomination highlights how the president wants to have a greater influence in the monetary policy.

What Happens Next

The nomination heads to the Senate for confirmation hearings. Warsh must garner majority support before he can assume the position of Fed Chair in mid‑May. Warsh must garner majority support before he can assume the position of Fed Chair in mid‑May. 

But other legislators have already indicated opposition, partly because the tenure of Powell and the transition conditions are under scrutiny.

Other senators have also raised issues related to timing of the procedure and the ongoing federal investigation on Powell. 

Others consider that Warsh is well qualified to lead the central bank in the face of the complicated economic problems, owing to his experience.

The Senate committees should discuss the policy views and opinions of Warsh on inflation, growth, and Federal Reserve role in the weeks. 

An established Warsh has the potential to alter the central bank-market communication and future interest rate determination.