US President Donald Trump has named former Federal Reserve governor Kevin Warsh as his choice to lead the US central bank. The decision sets up a possible change in the Federal Reserve’s relationship with the White House.

Warsh is expected to replace current chair Jerome Powell when Powell’s term ends in May. The appointment requires Senate confirmation.

Trump Picks Warsh, Criticizes Powell Again

Trump announced the decision today (Friday). He said he had known Warsh for a long time and expressed confidence in him. Trump said Warsh “will never let you down” and could be “one of the GREAT Fed Chairmen.”

• Totality, Saxo, Rostro, and More: Executive Moves of the Week
• IG Group, Sucden Financial, CFI, and More: Executive Moves of the Week
• RADEX MARKETS, B2Prime, Tickmill, and More: Executive Moves of the Week

Trump appointed Powell as Fed chair in 2017. Over the past year, he has repeatedly criticised Powell for not cutting interest rates faster. Trump has said the benchmark rate should be closer to 1 per cent. It currently stands at about 3.6 per cent.

Youngest Fed Governor Warsh Returns Washington

Warsh served on the Federal Reserve’s Board of Governors from 2006 to 2011. He was appointed at age 35, making him the youngest governor in the Fed’s history. His term covered the period before and during the 2008–09 financial crisis.

🚨 BREAKING: President Trump just NOMINATED Kevin Warsh as the next Chairman of the Federal Reserve! Replacing Powell with a true insider who gets it, former Fed Governor, Wall Street vet, and critic of the old regime.

This is HUGE for lower rates, growth, and putting America… pic.twitter.com/JZ43rfv0ri

— Gunther Eagleman™ (@GuntherEagleman) January 30, 2026

After leaving the Fed, Warsh became a fellow at the Hoover Institution. He also lectured at the Stanford Graduate School of Business.

During his earlier time at the Fed, Warsh was often seen as a policy hawk. He warned about the risks of keeping interest rates too low. He also opposed some of the central bank’s ultra-loose policies after the recession. In more recent speeches and opinion pieces, he has supported lower rates, aligning more closely with Trump’s views.

Nomination Raises Questions About Fed Independence

The move has renewed debate over the Fed’s independence. The central bank is designed to operate free from political pressure. Trump’s public criticism has sharpened that debate.

Under the plan, Warsh would first join the Fed’s board. The seat is now held temporarily by White House adviser Stephen Miran. Warsh could then become chair when Powell’s term ends.

Even if confirmed, Warsh would face limits. Rate decisions are made by a 19-member committee. Officials remain split between inflation concerns and signs of slower growth.