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If confirmed by the Senate, Kevin Warsh would succeed Jerome Powell as the US Fed chief. As Trump's nomination of Warsh culminates a month-long search for Powell's successor, reports state that the POTUS' longtime ally could face a difficult path ahead
US President Donald Trump, on Friday, nominated longtime ally Kevin Warsh to replace Jerome Powell as US Fed chief, whose tenure at helm ends in May 2026. However, Warsh can only assume power as the new Chair after the Senate approves the POTUS' nomination.
Trump's nomination of Kevin Warsh culminates a month-long search for Powell's successor, and follows Trump launching a fusillade of criticism against the Powell-led Fed almost since he took the job in 2018.
Warsh's Senate confirmation process is reportedly likely to be made difficult.
What's next for Kevin Warsh?
If confirmed by the Senate, Kevin Warsh would succeed Jerome Powell as the US Fed chief.
According to a NBC News report, Trump’s sustained pressure campaign urging the Fed to sharply cut interest rates has alienated several key senators whose backing Warsh will need in a closely divided Senate, potentially complicating the confirmation process.
Though chairs historically have resigned their Fed positions after being removed as chair, that may not be the case this time around. Jerome Powell still has two years left in his term as a Fed governor and, according to NBC News, may choose to stay on as a counterweight to President Donald Trump’s efforts to undermine the Fed’s independence.
The Supreme Court is already reviewing Trump’s move to unseat Governor Lisa Cook, a case that ultimately could determine what powers a president has over Fed board members.
What opposition can Kevin Warsh face?
According to a report by CNBC, Republican Sen. Thom Tillis has indicated he will block any Fed nominees until the Justice Department probe is finished.
Earlier this year, the Department of Justice issued grand jury subpoenas to the Central Bank initiating a criminal investigation into chairman Jerome Powell over his testimony before the Senate Banking Committee in June 2025.
Accusing Powell of ‘fraudulent’ costs involved in the renovation of Federal Reserve office buildings, Trump claimed the cost had jumped to $2.5 billion from the $1.9 billion that was originally planned in 2019. The US Justice Department said the investigation is over potential ‘abuse of taxpayer dollars’.
Meanwhile, Powell claimed the criminal probe stems from the Federal Reserve’s ‘decision to set interest rates based on what it believes is in the public’s best interest’, rather than ‘aligning policy with the president’s preferences.’
Who decides interest rates?
Powell alone does not decide interest rates. He is one of the 12 members of the Federal Open Market Committee (FOMC) – the body that meets eight times a year to debate and vote on whether to raise, cut or keep interest rates the same.
“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 his Truth Social post on Friday while nominating Warsh.
English (US) ·