United States President Donald Trump told reporters on January 29 that he will announce his nominee to replace outgoing Federal Reserve Chairman Jerome Powell on Friday morning (today local time), according to a Reuters report.
Speaking to reporters at the Kennedy Center, where he and his wife, Melania Trump, were watching the first lady’s documentary ‘Melania,’ Trump told reporters: “Tomorrow morning I will announce the chairmanship of the Fed.”
Kevin Warsh is speculated to be Donald Trump’s nominee. Once selected, Warsh will also need to be confirmed by the U.S. Senate to complete the appointment.
Despite his longstanding reputation as an inflation hawk, Kevin Warsh is increasingly aligning himself with the Trump administration as it pressures the central bank to raise interest rates as a result of the impact of the tariffs, a Bloomberg report noted.
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Four contenders are vying for the post of Fed chairman: Who prevailed?
Among Donald Trump’s top candidates – Christopher Waller (Fed Governor), Kevin Hassett (Director of the National Economic Council), Rick Rieder (BlackRock executive) and Kevin Warsh, it is former Fed Governor Warsh who announced today that he has done so, citing sources.
According to a January 27 Reuters report, the Kalshi prediction market placed the highest bets (48% probability) on Rieder being Trump’s final choice; while Warsh is second on the betting charts (31%), followed by Waller and Hassett (around 8% each).
One source told Bloomberg that Kevin Warsh visited the White House on January 28. It added that the White House and Kevin Warsh did not immediately respond to inquiries on the matter.
Donald Trump’s announcement to reporters also fanned the flames that Warsh would succeed Powell. “A lot of people think this is someone who could have been there a few years ago,” the US president said.
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Who is Kevin Warsh? A former Fed governor who made Trump’s shortlist — twice
Kevin Warsh, 55, is a former Federal Reserve governor who served on the US Federal Reserve’s Board of Governors from 2006 to 2011. He is also close to Donald Trump and has advised the president on economic policy, according to a Bloomberg report.
According to a Wall Street Journal report, Kevin Warsh was an economic adviser to the George W. Bush administration and also previously worked on Wall Street.
When Warsh was appointed to the Fed’s board in 2006 at the age of 35, he became the youngest Fed governor in history, according to an AP report. He is now a fellow of 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 eventually picked Jerome Powell, the WSJ report added. His name appearing on Trump’s shortlist this year makes him the only candidate to appear twice.
Jerome Powell’s term ends this May, but he is not required to leave the Fed’s Board of Governors until 2028, according to a Reuters report.
In particular, Trump expressed disappointment over the appointment of incumbent Jerome Powell. “I think I have someone I like the most. I like them all, but I want to be careful because I got the wrong recommendation,” he said. The WSJ noted that then-Treasury Secretary Steven Mnuchin was the one who recommended Powell in 2017.
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The position of Fed chairman: About the other leading candidates
- Kevin Hassett, director of the National Economic Council: Hassett has a doctorate in economics and is also considered a front-runner because of his long association with Trump and his support for cutting interest rates. Notably, Hassett was Trump’s chief economic adviser from 2017 to 2019. He briefly returned to the role in 2020 during the COVID-19 pandemic. In January 2025, he was named head of the National Economic Council.
- Christopher Waller, Fed governor: Waller is the current Fed chief, whom Trump nominated in 2020. He recently emphasized that the Federal Reserve has room to cut interest rates further in line with Trump’s preferences. However, unlike Hassett and Warsh, he lacks the personal connections to top Trump’s list, according to the BBC.
- Rick Rieder, BlackRock chief executive: With a long career on Wall Street, Rieder has drawn Trump’s attention with his proposals for Fed reform, according to Bloomberg. He also has an advantage over the other three finalists because he has never worked at the Fed, which makes him appear less tied to the institution.
Key things
- Kevin Warsh, a former Fed governor, is the leading candidate to replace Jerome Powell as Fed chairman.
- Warsh’s previous nomination in 2017 suggests his long-term relevance in Fed discussions.
- Trump’s dissatisfaction with Powell could affect his selection process for the new Fed chief.
