President Donald Trump ended months of speculation Friday morning by announcing former Fed Governor Kevin Warsh as his next pick. The Federal Reserve a chair. If confirmed, Warsh will replace current Fed Chairman Jerome Powell when his term expires in May.
Trump announced Warsh as his nominee in a Truth Social post. After listing his business accomplishments, Trump wrote: “I have known Kevin for a long time, and I have no doubt that he will go down as one of the GREAT Fed Chairs, perhaps the best.”
Trump told reporters Thursday night that he would announce a new Fed chairman this morning and the 10-year yield rose on speculation that Warsh was his choice.
HousingWire lead analyst Logan Mohtashami said, “The financial community may be confused by Kevin Warsh’s past views on monetary policy, but I believe he has abandoned many of his old views and convinced Trump that he will try to get rates as low as possible to get this position. His views may change when Trump leaves office, but as long as Trump is president, I believe Kevin is still president. Yield for 10 years we went up overnight but we went down a bit from that.”
Warsh served as Fed Governor from 2006-2011 and after the 2008 financial crisis served as the Fed’s primary liaison with Wall Street. He is currently a partner of Stanley Druckenmiller at Duquesne Family Office LLC and Shepard Family Visiting Fellow in Economics at Stanford University’s Hoover Institution. Warsh earned his AB from Stanford University, and his JD from Harvard Law School.
In his second term, President Trump and his administration held a full court press conference against Powell and several Fed governors to lower interest rates. Last week, the Supreme Court heard oral arguments in the case against Fed Governor Lisa Cook, whom Trump has tried to fire, accusing her of committing mortgage fraud for allegedly failing to meet residency requirements on two mortgages. Despite pressure from Trump, the Fed left rates unchanged last week after three consecutive cuts through 2025.
The process to become the Chairman of the Fed begins with Warsh succeeding Fed Governor Stephen Miran on Feb. 1. Miran filled the seat after Adriana Kugler resigned in August 2025.
Warsh could face tough Senate confirmation after the Justice Department subpoenaed grand juries as part of an investigation into Fed Chairman Jerome Powell, sparking bipartisan criticism. Senators Thom Tillis (RN.C.) and Elizabeth Warren (D-Mass.) accused President Trump of using the investigation to pressure Powell to resign and assert political control over the central bank.
Tillis, a Republican member of the Senate Banking Committee, has promised to block any Fed nominees until the Justice Department completes its investigation. While Powell’s term as chairman ends in May, he could remain on the Fed’s board until 2028 if the Senate refuses to confirm Warsh.
In addition to Warsh, Trump had considered three other candidates to lead the Federal Reserve: The National Economic Council Director Kevin Hassett, Federal Reserve Gov. Christopher Waller, and BlackRock Officer Rick Rieder.
