Trump names former FRS official as next Fed chair
· DWIf confirmed by the US Senate, Kevin Warsh, a former Federal Reserve Governor, will become the next chair of the Federal Reserve System (FRS), the US central bank.
President Donald Trump on Friday nominated former Federal Reserve Governor Kevin Warsh to lead the US central bank after Jerome Powell's term ends in May.
"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 wrote on his Truth Social platform.
If confirmed by the US Senate, Warsh will replace current Federal Reserve Chairman Jerome Powell, whom Trump has repeatedly criticized for his decisions regarding interest rates.
What do we know about Kevin Warsh?
Warsh served on the Federal Reserve System's Board of Governors from 2006 to 2011. He was the youngest governor in history when he was appointed at age 35. Previously, Warsh used to be a mergers and acquisitions banker at Morgan Stanley.
During his first term, Trump also considered Warsh for the position of Federal Reserve Chair, to replace Janet Yellen. However, he eventually chose Powell.
Currently, Warsh is a fellow at the conservative Hoover Institution and a lecturer at the Stanford Graduate School of Business. Recently, he has stepped up his criticism of the Fed, endorsing many of Trump's and his administration's policy positions.
Warsh said he believes the US president is right to urge the central bank to implement significant rate cuts. He also criticized the Fed for underestimating the inflation-fighting potential of productivity growth fueled by artificial intelligence.
What does Trump want from the Fed?
Trump has consistently and forcefully called for interest rate cuts to stimulate the economy. Although the independent central bank has lowered rates in several steps, the US president insists these moves do not go far enough.
He has frequently attacked Powell publicly and raised the prospect of removing him from office.
The Federal Reserve has long been viewed as a stabilizing force in global financial markets, largely due to its perceived independence from political influences.
Trump's increasing attempts to challenge that autonomy, such as his Justice Department's decision earlier this month to initiate a criminal investigation into Powell, have rattled investors and paved the way for a difficult Senate confirmation process for any successor.
Edited by: Saim Dušan Inayatullah