President Donald Trump is set to announce former Federal Reserve Governor Kevin Warsh as his nominee for the next Federal Reserve chair.
Warsh is poised to replace current Chair Jerome Powell, whose leadership term ends in May 2026. According to administration officials and reports from major news outlets, Trump plans to announce his pick to lead the US central bank on Friday morning.
The selection follows a high-profile search that was highlighted by a teaser from the President at a documentary premiere. Meanwhile, officials have been requested not to discuss the matter publicly, as the selection is not final until Trump makes a formal announcement.
The president heralded his impending announcement without giving the name away on Thursday evening, saying that the choice wouldn’t be too surprising and would be known to everyone in the financial world.
“A lot of people think this is somebody that could’ve been there a few years ago.” Trump said.
According to Bloomberg, Warsh served on the US central bank’s Board of Governors from 2006 to 2011 and has advised Trump on economic policy. Trump has pursued a candidate who would be widely acceptable to markets and also shares his inclination to cut interest rates rapidly.
Trump’s selection of Warsh may face a complicated path to confirmation in the US Senate. Warsh is likely to be broadly accepted to a swath of Republican senators; with Bill Hagerty of Tennessee calling him “a clear choice that the markets would accept and appreciate.”
In line with a statement issued by the senator, Thom Tillis- a North Carolina Republican who sits on the Banking Committee- has pledged to obstruct any of Trump’s Fed nominees until the US Justice Department resolves an investigation.
The investigation, which revolves around Powell’s testimony to Congress, has fueled apprehension regarding threats to the Fed’s independence.
To that end, Tillis told reporters at the US Capitol on Thursday: “The Fed nominations are not going to move until the investigation and potential indictment of Chair Powell is completed.”
“DOJs got to decide when I lift those holds. It gets lifted the day that case is adjudicated or withdrawn.” he further added.
Furthermore, it has been clarified that a Fed chair nominee likely could not be confirmed without Tillis’s support. When asked if a confirmation was possible without him, Senate Majority Leader John Thune reportedly replied, “Probably not.”