Trump nominates Kevin Warsh to succeed Jerome Powell as Federal Reserve chair

President Donald Trump said on Friday that he is nominating Kevin Warsh to lead the Federal Reserve, succeeding Jerome Powell when his term expires in May. The move comes at a turbulent moment for the Federal Reserve, as the Justice Department conducts a criminal probe into Powell, the Supreme Court weighs limits on the Fed’s independence and the cost of living tests Trump's economic agenda. "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," Trump wrote on Truth Social. "On top of everything else, he is 'central casting,' and he will never let you down. Congratulations Kevin!" If confirmed by the Senate, Warsh would assume one of the most powerful positions in U.S. economic policymaking, with direct influence over interest rate decisions and the central bank’s battle against inflation. The Federal Reserve, which sets borrowing costs and shapes inflation, wields enormous influence over Americans’ day-to-day affordability. Warsh’s potential ascension to the top spot at the Fed comes as Trump has often made Powell a lightning rod for economic criticism, with tensions between the two deteriorating over interest rate decisions and broader monetary policy. Trump has called on the Fed to cut rates, which he says could save the nation "hundreds of billions of dollars." Powell held the benchmark rate at 4.25% to 4.5% as the Fed took a wait-and-see approach to assess the impact of the president's sweeping tariffs. While the central bank has since lowered rates, Trump’s attacks on Powell, whom he nominated in 2017, have increasingly taken on a personal tone, including the use of mocking nicknames.