President Donald Trump announced Friday that he will name financier and bank executive Kevin Warsh to succeed Jerome Powell as chair of the Federal Reserve.
The choice, which was announced on Trump’s Truth Social account, ends a search that began last summer, but unofficially began even before that
“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,” Trump said in a Truth Social post announcing the selection. The announcement comes as Trump has stepped up his criticism of Powell, who earlier in January, announced that the Department of Justice had begun an investigation into his testimony before Congress.
Powell was appointed by Trump during his first term in 2018 and later reappointed by former President Joe Biden. His term as chair ends in May.
Warsh was on Board of Governors from 2006 to 2011
Warsh, 55, previously served on the Fed’ Board of Governors from 2006 to 2011, and observers said that his nomination likely won’t ripple markets because of his past Fed experience and Wall Street’s view that he wouldn’t always do Trump’s bidding.
“He has the respect and credibility of the financial markets,” said David Bahnsen, Chief Investment Officer of The Bahnsen Group, on CNBC’s “Squawk Box.”
“There was no person who was going to get this job who wasn’t going to be cutting rates in the short term. However, I believe longer term he will be a credible candidate,” Bahnsen said.
Warsh now faces Senate confirmation and if approved, he will take over when Powell’s term expires. Warsh will fill the Board of Governors position currently held by Governor Stephen Miran, whose term expired Saturday. Miran can continue to serve until a replacement is named.
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