Trump team prepares to back ex-Fed governor Kevin Warsh as central bank chief: Sources
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Being appointed Federal Reserve chair would mark a comeback for Mr Kevin Warsh, who was passed over for the top job in 2017.
PHOTO: BLOOMBERG
WASHINGTON – The Trump administration is preparing for the US President to nominate Mr Kevin Warsh as the next Federal Reserve chair, according to people familiar with the matter.
Mr Donald Trump said on Jan 29 that he plans to announce his pick to lead the US central bank on the morning of Jan 30.
The people, who requested anonymity to discuss matters not yet public, cautioned that the selection is not final until Mr Trump makes a formal announcement.
The White House and Mr Warsh did not immediately respond to requests for comment.
Mr Warsh, a former Fed governor and one of the four finalists on Mr Trump’s shortlist to lead the central bank, visited the White House on Jan 29, one person said.
Stocks fell and Treasury yields pushed higher on bets that Mr Warsh will become the next Fed chair. The US dollar extended gains, while precious metals declined. Prediction markets showed a surge in bets earlier on Jan 29 on Mr Warsh being chosen.
Other candidates on the shortlist have included National Economic Council director Kevin Hassett, Fed governor Christopher Waller and BlackRock executive Rick Rieder.
The President teased his impending announcement without giving the name away on the evening of Jan 29, saying the pick would not be too surprising and would be someone known to everyone in the financial world.
“A lot of people think this is somebody that could’ve been there a few years ago,” Mr Trump said.
Mr Warsh served on the US central bank’s Board of Governors from 2006 to 2011 and has previously advised Mr Trump on economic policy. If nominated and confirmed, he would succeed Mr Jerome Powell, whose term at the helm ends in May.
It would mark a comeback for Mr Warsh, 55, whom the President passed over for the top job in 2017 when he selected Mr Powell.
Mr Warsh has aligned himself with the President in recent months by publicly arguing for lower interest rates, going against his longstanding reputation as an inflation hawk.
Mr Trump has sought a candidate who would be broadly acceptable to markets and also shares his inclination to cut interest rates further and faster.
The Fed earlier this week held rates steady after lowering them three times at the end of 2025. BLOOMBERG
