United States President Donald Trump on Friday, January 30, 2026, nominated his longtime ally and former Federal Reserve Governor Kevin Warsh to replace Chairman Jerome Powell as the next chairman of the U.S. Federal Reserve amid pleas from the federal administration to cut interest rates in the economy.
“I am pleased to announce that I am appointing Kevin Warsh to chair the BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM,” President Trump said in a statement to Truth Social.
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Kevin Warsh’s nomination must be approved by the US Senate before he can take over the role of Federal Reserve Chairman from Jerome Powell in the near future.
Trump’s nomination to replace Powell with Warsh comes as the federal administration seeks further rate cuts in the U.S. economy, while the Fed’s FOMC charts a cautious path forward. The nomination also comes days after the US Fed’s FOMC decided to keep key benchmark interest rates for the US economy unchanged at 3.50-3.75%.
From “inflation hawk” to “too slow to cut rates”?
According to a Financial Post report, Kevin Warsh used to be what people call an inflation “hawk,” a term used to describe federal policymakers who are more focused on favoring stable prices and low inflation in the economy.
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This move is usually done to facilitate tighter economic policies and aim for a lower rate of inflation in the country’s economy. That was Warsh before he stepped down as Federal Reserve governor in 2011, ahead of the end of his term in 2018.
The news report also highlighted that Warsh has increased his criticism of the US central bank, which supports the Trump administration’s policy stances, rather than the US Fed’s cautious actions.
In 2025, Kevin Warsh, speaking about the US economy, said that the US Federal Reserve had deviated from its mission of monetary policy into policy areas where it lacked expertise, and argued that the central bank was making poor policy decisions and holding back the US economy from further growth.
Relationship with the Trump administration
According to a Guardian report, while Kevin Warsh warned of inflationary risks in the US economy, he also backed Trump’s claim that the US central bank was “too slow” to cut key benchmark interest rates in the economy.
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Higher interest rates in the economy are likely to increase inflation because of the higher risk of unemployment in the country.
He also said last year that Fed central bankers should not be treated like “spoiled princes” and too regularly “takes views on matters outside his remit”, leading to “systemic errors” in his main job of keeping prices stable, according to a news outlet report.
“They think you have to lower interest rates,” Trump said in an interview with Kevin Warsh in December 2025.
Will Warsh support Trump?
US Fed nominee Kevin Warsh is not a guaranteed “yes” on the coming rate cut for the US economy; however, his recent criticism of the Fed’s policy decisions shows a potential downward bias.
According to a report by The New York Times, Kevin Warsh supports Trump’s economic agenda, especially when it comes to deregulation of banking, since last year he argued that the Federal Reserve needed a “regime change,” criticizing the consideration of policies focused on climate and inclusion.
The report also points out that Warsh has reportedly publicly downplayed the inflationary effects of Trump’s tariffs.
“I have known Kevin for a long time and I have no doubt that he will be one of the GREAT Fed Chairs, maybe the best. He is ‘central casting’ above all else and will never let you down. Congratulations Kevin!” Trump said in his announcement Friday.
