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Trump nominates Kevin Warsh to lead Federal Reserve.
MLN -28 JAN 2026: President Donald Trump on Friday nominated former Federal Reserve governor Kevin Warsh to serve as the central bank’s next chair, setting up a confirmation fight that could test the Fed’s independence and the administration’s relationship with Congress.
“I am pleased to announce that I am nominating Kevin Warsh to be the CHAIRMAN OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM,” Trump wrote in a post on Truth Social.
“I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best,” the president added. “On top of everything else, he is ‘central casting,’ and he will never let you down. Congratulations Kevin!”
Trump separately addressed speculation that he might select White House National Economic Council Director Kevin Hassett, writing that Hassett would have been “great” but was “doing such an outstanding job working with me and my team at the White House, that I just didn’t want to let him go.”
Warsh, 55, is a former Morgan Stanley banker and economic adviser to President George W. Bush who served on the Federal Reserve’s Board of Governors from 2006 to 2011. During that period, he became the youngest governor in the Fed’s history and served as the central bank’s primary liaison to Wall Street during the 2007–08 financial crisis.
A frequent contender for senior economic posts in Republican administrations, Warsh was a finalist for Trump’s first Fed chair nomination in 2017, a role that ultimately went to current Chair Jerome Powell. Powell’s term as chair ends in May.
If confirmed, Warsh would take over at a time of heightened political pressure on the Fed. Trump has repeatedly criticized Powell, calling his 2017 nomination one of his biggest regrets and accusing the chair of mismanaging inflation and refusing to cut interest rates aggressively enough. Powell has rejected those claims and has said Fed decisions are guided solely by the central bank’s dual mandate of maximum employment and stable prices.
Warsh’s nomination could face resistance in the Senate. Republican Sens. Thom Tillis of North Carolina and Lisa Murkowski of Alaska have said they will oppose any Fed chair nominee while the Justice Department is conducting a criminal probe related to the central bank and Powell. Tillis, who sits on the Senate Banking Committee, could also slow the nomination at the panel level.
Democrats have also voiced anger over Trump’s efforts to fire Fed board member Lisa Cook, a move now before the Supreme Court. A ruling against Cook could give the president broader authority to remove Fed governors, potentially reshaping the institution.
Trump has said his next Fed chair should be willing to consult with him on interest rate decisions, a stance that Fed historians and economists say would undermine the central bank’s long-standing independence.
Warsh has previously argued that the Fed has used independence as a shield from accountability and has said central bankers should grow up and be tough in the face of criticism. He also has close political ties to Trump; his father-in-law, cosmetics heir Ronald Lauder, has been a major donor to Trump and other Republicans.
Powell has said he intends to serve through the end of his term and has emphasized that the Fed’s policy decisions are not influenced by political pressure.
