Trump Picks Kevin Warsh as Next Fed Chair (2026)

Trump Nominates Kevin Warsh to Lead Federal Reserve

President Donald Trump announced a major change for the U.S. central bank on Friday. Specifically, he has nominated former Fed official Kevin Warsh to serve as the next chair. Warsh will replace Jerome Powell when his term expires in May 2026. Notably, Trump has spent months criticizing Powell for keeping interest rates too high. This new pick signals a potential shift toward a more political and less independent Federal Reserve.

Who is Kevin Warsh?

Kevin Warsh is not a newcomer to the central bank. First, he served as the youngest Fed governor in history starting at age 35. Next, he played a key role during the 2008 financial crisis under Ben Bernanke. Currently, he is a fellow at the Hoover Institution and a lecturer at Stanford. Furthermore, he has deep ties to the President. His father-in-law, Ronald Lauder, is a longtime confidant of Donald Trump.

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• Age: 55

• Experience: Fed Governor (2006–2011)

• Education: Harvard Law and Stanford University

• Background: Former investment banker at Morgan Stanley

A Shift in Policy?

For many years, Warsh was known as an “inflation hawk.” However, he has recently aligned his views with the White House. Specifically, he now supports lower interest rates to boost the economy. Trump wants the key rate to drop as low as 1%. Consequently, some economists worry that this could lead to higher inflation in the long run. Nevertheless, markets currently view Warsh as a “safe choice” compared to other more radical candidates.

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The Fight for Independence

The Federal Reserve has always operated independently from the President. Yet, this nomination could change that dynamic. Specifically, Trump has often stated that his “voice should be heard” regarding rate decisions. Additionally, the White House has recently escalated pressure on the bank through legal probes. Therefore, the Senate confirmation process for Warsh is expected to be very contentious.

What This Means for You

Fed decisions impact almost every part of your financial life. For instance, lower rates usually lead to cheaper mortgages and car loans. Similarly, aggressive rate cuts can cause the prices of groceries and gas to rise. In conclusion, Kevin Warsh will have to balance the President’s demands for growth with the need to keep inflation under control.

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