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US President Donald Trump is likely to nominate Kevin Warsh to be the next Federal Reserve chair replacing Jerome Powell, according to a Bloomberg report. Here's all you need to know about the former Fed governor who has made it to Trump's list twice.
United States President Donald Trump on 29 January told reporters that he will announce his candidate to replace outgoing Federal Reserve Chair Jerome Powell on Friday morning (today, local time), as per a Reuters report.
Speaking to reporters at the Kennedy Center, where he was with wife Melania Trump to watch the First Lady 's documentary movie ‘Melania’, Trump told reporters, “I’ll be announcing the Fed chair tomorrow morning.”
Speculation is rife that Donald Trump's rumoured nominee will be Kevin Warsh. Once picked, Warsh will also have to be confirmed by the US Senate for the appointment to be finalised.
Despite his longstanding reputation as an inflation hawk, Kevin Warsh has increasingly aligned himself with the Trump administration as it pressured the central bank to increase interest rates amid tariff impact, a Bloomberg report noted.
Four contenders vie for Fed chair post: Who has made the cut?
Among Donald Trump's top contenders — Christopher Waller (Fed Governor), Kevin Hasset (National Economic Council Director), Rick Rieder (BlackRock executive) and Kevin Warsh, it is the former Fed governor Warsh who has made the cut, Bloomberg reported today, citing sources.
Notably, prediction market Kalshi has placed top bets (48% probability) on Rieder being Trump's final pick, as per a Reuters report on 27 January; while Warsh is second on the betting scale (31%), followed by Waller and Hasset (around 8% each).
One source told Bloomberg that Kevin Warsh visited the White House on 28 January. It added that the White House and Kevin Warsh did not immediately respond to queries on the matter.
Donald Trump's statement to reporters also fuelled the flames that Warsh will take up the post after Powell. “A lot of people think this is somebody that could’ve been there a few years ago,” the US president said.
Who is Kevin Warsh? Ex-Fed governor who rose on Trump's finalist list — twice
Kevin Warsh (55) is a former Federal Reserve Governor, who served on the US central bank’s Board of Governors from 2006 to 2011. He is also close to Donald Trump and has advised the president on economic policy, the Bloomberg report said.
According to a Wall Street Journal report, Kevin Warsh was an economic advisor to the George W Bush administration and has previously also worked on Wall Street.
As per an AP report, when he was appointed to the Fed's governing board in 2006 Warsh at age 35, become the youngest Fed governor in history. He is now a fellow at the Hoover Institution and a lecturer at the Stanford Graduate School of Business.
Notably, he also made the top two in 2017, when Donald Trump ultimately picked Jerome Powell, the WSJ report added. His name propping up in Trump's finalist list this year makes him the only candidate to appear twice.
Jerome Powell's term ends in May this year, but he is not obligated to leave the Fed's Board of Governors until 2028, as per a Reuters report.
Notably, Trump has expressed disappointment in his appointment of incumbent Jerome Powell. “I think I have somebody that I like the best. I like all of them, but I want to be careful because I was given a bad recommendation,” he said. WSJ noted that then-Treasury Secretary Steven Mnuchin was the one who recommended Powell in 2017.
Fed chair post: About the other leading candidates
- Kevin Hassett, National Economic Council Director: Hassett is a PhD in Economics, and is also considered a top contender because of his long association with Trump and his support for interest rate cuts, per reports. Notably, Hassett was a senior economic adviser to Trump between 2017 to 2019. During the COVID-19 pandemic, he returned to the role briefly in 2020. He was appointed as head of the National Economic Council in January 2025.
- Christopher Waller, Fed Governor: Waller is the current Fed official, nominated by Trump in 2020. He recently emphasised that the Federal Reserve has room to lower interest rates further, aligning with Trump’s preferences. However, unlike Hassett and Warsh, he is seen as lacking the personal connections to reach the top of Trump’s list, according to the BBC.
- Rick Rieder, BlackRock executive: With a long career on Wall Street, Rieder has drawn Trump’s attention with his proposals to reform the Fed, as per Bloomberg. He also has an advantage over the other three finalists because he has never worked at the Fed, making him appear less tied to the institution.
Key Takeaways
- Kevin Warsh, a former Fed governor, is a leading candidate to replace Jerome Powell as Fed Chair.
- Warsh's previous nomination in 2017 indicates his longstanding relevance in Fed discussions.
- Trump's dissatisfaction with Powell could influence his selection process for the new Fed Chair.
English (US) ·