President Donald Trump has named former Federal Reserve Governor Kevin Warsh as the next chair of the U.S. central bank. The decision ends months of speculation and sets the stage for a heated debate over the independence of the Federal Reserve.
Warsh is set to replace Jerome Powell at a time when inflation remains above target and economic growth is slowing. Trump announced the pick on Truth Social, calling Warsh a strong leader who could become one of the best Fed chairs in history.
Warsh, 55, served as a Fed governor from 2006 to 2011 during the global financial crisis. He later became a frequent critic of the central bank and has called for a major change in how it operates.
Many see the nomination as an effort by Trump to install a chair who supports lower interest rates. Trump has often criticized the Fed for keeping rates too high. Still, some investors believe Warsh would act independently once in office.
Markets reacted calmly to the announcement. Stock futures dipped slightly but later recovered, suggesting investors expect policy continuity rather than sudden shifts.
The nomination comes amid rising political pressure on the Fed. A Justice Department probe into Powell has raised concerns about government influence over monetary policy, though Powell has dismissed the investigation as politically motivated.
Warsh now faces a tough confirmation process in the Senate. Lawmakers are divided, and the debate is likely to focus on how much power the White House should have over the central bank.
