President Donald Trump is expected to nominate former Federal Reserve governor Kevin Warsh as the new chair of the central bank, a move that comes amidst an ongoing attack on the Fed's independence.
CONTENT:
In a surprising turn of events, President Donald Trump announced his intention to nominate Kevin Warsh, a former Federal Reserve governor, as the new chair of the US central bank. This decision comes amidst an escalating conflict between the White House and the Federal Reserve over monetary policy and the central bank's independence.
According to multiple news sources, including The Guardian, Trump is expected to make the official announcement on Friday morning. During a press conference on Thursday, Trump hinted at his choice, stating that he would be nominating someone who could have been in the position "a few years ago."
The nomination of Warsh, a well-known critic of the Fed's current policies, comes at a critical time for the US economy. The Federal Reserve, under the leadership of current chair Jerome Powell, has implemented a series of interest rate increases to combat inflation. These increases have raised concerns among some economists and Democrats, who argue that they could slow down economic growth.
Trump's attack on the Federal Reserve's independence has been a source of controversy. In recent months, the president has criticized the central bank for not doing enough to boost the economy and has suggested that he could remove Powell from his position. These comments have raised concerns among many, including some within the Fed, about the potential political interference in monetary policy decisions.
Warsh, who served on the Federal Reserve Board of Governors from 2006 to 2011, has been a vocal critic of the current Fed policies. In a recent op-ed, he argued that the central bank should focus more on inflation and less on employment when setting monetary policy. He has also been critical of the Fed's decision to maintain its current low-interest rate environment.
The nomination of Warsh is likely to face significant opposition, both from Democrats and some within the Fed. Some argue that the central bank needs an independent chair who is not beholden to political pressures. Others argue that Warsh's views on monetary policy are out of step with current economic conditions.
Despite these concerns, Trump is pushing forward with the nomination. The announcement is expected to come on Friday, and if confirmed by the Senate, Warsh would replace Powell as the head of the Federal Reserve.
This development marks a significant shift in the US economic landscape and raises questions about the future direction of monetary policy. The nomination of Warsh is a clear indication that Trump intends to take a more assertive role in shaping the US economy, and it remains to be seen how this will play out in the coming months.
Sources:
The Guardian: "Donald Trump expected to nominate Kevin Warsh as US Federal Reserve chair" (https://www.theguardian.com/business/2026/jan/30/donald-trump-nominate-new-us-federal-reserve-chair)
Business live – latest updates (https://www.theguardian.com/business/live/2026/jan/30/trump-federal-reserve-chair-nominee-eurozone-gdp-french-economy-slows-business-live-news-updates)