Trump nominates Kevin Warsh to be Fed chair

President Trump has nominated Kevin Warsh to be the next Federal Reserve chair; if the Senate confirms him he would replace Jay Powell, whose term as Fed chairman expires in May, the article says. Warsh is a former Fed governor who played a prominent role during the 2008 global financial crisis and is described as a longtime acolyte of financier Stanley Druckenmiller.

He was an M.&A. banker at Morgan Stanley and is currently a partner at Duquesne Family Office; the article notes Trump nearly named him Fed chair in his first term and considered him for Treasury later. The piece says Warsh has grown increasingly critical of the Fed’s handling of inflation and its market influence.

He argued last year that the Fed needed "regime change," criticized the Fed’s consideration of policies focused on climate and inclusion, and has publicly played down the inflationary effects of the president’s tariffs. He is also described as no fan of quantitative easing, saying it creates market distortions that tend to benefit Wall Street.

Market reaction was mixed, the article reports: the dollar rebounded while S&P 500 futures and Treasury securities sold off. Francesco Pesole of ING called Warsh "amongst the most market-friendly candidates" in an investor note. The article also cites a Deutsche Bank note from Matthew Luzzetti saying "Walsh was not 'structurally dovish,'" and notes Warsh criticized the Fed’s September 2024 cut though has recently been more supportive of rate reductions.

kevin warsh nomination, federal reserve chair, jay powell replacement, duquesne family office, stanley druckenmiller, morgan stanley banker, quantitative easing criticism, fed handling of inflation, senate confirmation prospects, s&p 500 futures selloff, tariffs inflation effects, thom tillis opposition