Trump picks former Fed official Kevin Warsh to run Fed

Published Fri, Jan 30, 2026 · 08:03 PM — Updated Fri, Jan 30, 2026 · 08:15 PM

[WASHINGTON] US President Donald Trump on Friday (Jan 30) chose former Federal Reserve governor Kevin Warsh to head the US central bank when Jerome Powell’s leadership term ends in May, giving a frequent Fed critic a chance to put his idea of monetary policy “regime change” into practice at a moment when the president has pushed for more control over the central bank.

“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. On top of everything else, he is ‘central casting, and he will never let you down,” Trump said in announcing his latest move to put his stamp on a Fed he persistently lambasts for not caving to his demands for lower interest rates. The position requires confirmation by the US Senate.

The Fed has long been seen as a stabilising force in global financial markets due in no small part to its perceived independence from politics.

Trump’s escalating efforts to test that independence, including in January his Justice Department’s decision to open a criminal probe into Powell, have set the stage for a challenging Senate confirmation process for any successor.

It has also opened the door to the possibility that Powell, who called the criminal probe a pretext to pressure the Fed into setting monetary policy as the president wishes, may opt to stay on at the Fed even after his chair term is up in a bid to safeguard the Fed from political capture.

The nomination caps a months-long process that often resembled a public audition as Warsh, White House economic advisor Kevin Hassett and other top contenders – including sitting Fed governor Christopher Waller and Wall Street insider Rick Rieder – appeared regularly on television to tout their credentials and showcase their thoughts about the economy and Fed policy. REUTERS