President Donald Trump has announced that former Federal Reserve Governor Kevin Maxwell Warsh will succeed Jerome Powell as chair of the Federal Reserve when 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,” said President Trump via a post on Truth Social. “On top of everything else, he is ‘central casting,’ and he will never let you down. Congratulations Kevin!”
A financier, lawyer, and former bank executive, the 55-year-old Warsh is a Stanford University graduate with a J.D. from Harvard Law School. He began his career in mergers and acquisitions at Morgan Stanley before serving as special assistant to the President for Economic Policy and Executive Secretary of the White House National Economic Council.
From 2006 to 2011, he was the youngest member of the Federal Reserve’s seven-person Board of Governors at the age of 35, playing a central role during the 2008 financial crisis.
After his time at the Fed, Warsh became a distinguished visiting fellow in economics at Stanford’s Hoover Institution, a lecturer at the Stanford Graduate School of Business, and an adviser to public and private entities.
“MBA congratulates Kevin Warsh on his nomination to serve as Chairman of the Federal Reserve," said Mortgage Bankers Association (MBA) President and CEO Bob Broeksmit, CMB. "His prior service on the Federal Reserve Board, where he developed a reputation as a prudent, thoughtful voice on monetary policy, paired with his private sector experience, will be invaluable as he leads the Federal Reserve in what has become an increasingly challenging and complicated mission."
Former Fed Chair Ben Bernanke described Warsh as one of his closest advisers, citing his political instincts and market knowledge. However, Warsh’s record during the Great Recession includes resistance to aggressive rate cuts and skepticism toward large-scale asset purchases, positions critics say underestimated the risk of deflation and economic collapse.
“Warsh brings something markets crave right now — credibility rooted in experience,” said Dean Lyulkin, a registered investment advisor and founder of The Dean’s List, who tracks the intersection of monetary policy, markets, and business stability. “He was in the room during the financial crisis, and that kind of policy scar tissue matters. Leaders who’ve seen how fast credit stress spreads tend to communicate more clearly and move with fewer surprises. Businesses and investors can plan around that.”
More recently, Warsh faulted the Powell-era Federal Reserve for allowing inflation to surge in 2021–22, and argued that the Fed has strayed from its mandate by engaging on issues such as climate change and diversity initiatives. In a recent Wall Street Journal opinion piece, Warsh rejected the idea that inflation stems from strong growth or rising wages, instead blaming excessive government spending and money creation.
In an appearance last July on CNBC, Warsh not only called for a “regime change” at the Federal Reserve, but also stated how artificial intelligence (AI) could significantly boost productivity and reduce costs in the economy, aligning with Trump’s view of advances in AI.
“What we call ‘AI’ in a couple of years we will just call ‘business,’” said Warsh in his appearance. “AI is going to make almost everything cost less and the U.S. can be a big winner.”
Sen. Thom Tillis (R-NC), a member of the Senate Banking, Housing, and Urban Affairs Committee, has publicly stated that he will oppose any Trump administration nomination of a new Federal Reserve chair until a criminal probe of Jerome Powell by the Department of Justice (DOJ) is “fully” resolved.
“Kevin Warsh is a qualified nominee with a deep understanding of monetary policy. However, the Department of Justice continues to pursue a criminal investigation into Chairman Jerome Powell based on committee testimony that no reasonable person could construe as possessing criminal intent. Protecting the independence of the Federal Reserve from political interference or legal intimidation is non-negotiable,” said Sen. Tillis via X. “My position has not changed: I will oppose the confirmation of any Federal Reserve nominee, including for the position of Chairman, until the DOJ’s inquiry into Chairman Powell is fully and transparently resolved.”
The DOJ is examining Powell’s role in the Federal Reserve’s multibillion-dollar headquarters renovation, including statements he made to Congress about the project.
The Senate Banking, Housing, and Urban Affairs Committee is composed of 13 Republicans and 11 Democrats, meaning opposition from even a single Republican member could deadlock the panel and prevent Warsh’s nomination from advancing to the full Senate with a favorable recommendation.
