Trump has officially announced: this will be the next Fed chairman

The appointment comes after months of unusual tension between Trump and the Fed, a murky relationship that began almost immediately when Powell took office in 2018. Over the years, Trump has attacked the interest rate policy, consistently pressed for sharp interest rate cuts, and even continued the criticism even after three consecutive interest rate cuts at the end of 2025. At the same time, he attacked the leadership of the Fed also regarding the costs of the expensive renovation of the bank’s headquarters in Washington.

In his message, Trump wrote: “I have known Kevin for a long time, and I have no doubt that he will be remembered as one of the great chairs of the Fed – perhaps the best ever.”

Warsh himself, a former governor of the Fed, has previously expressed sharp criticism of the leadership of the central bank. In an interview with CNBC last summer, he called for “regime change” at the Fed, and claimed that the credibility problem lies with the current leadership – a position that may place him in an internal conflict with an institution based on consensus and collective decision-making.

Bottom line: this is a clear political-ideological appointment, which may fundamentally change the direction of monetary policy in the US and the independence of the Federal Reserve in the coming years.

The importance of the appointment

Trump considered Warsh’s candidacy back in his first term in the White House, but ultimately gave the job to Powell. In the meantime, the president has become one of the biggest critics of the American governor, against the background of the claim that he is not lowering the interest rate to a sufficient level. In May, the official date for the end of Powell’s term will come.

This is one of the key roles in the global economy, if not the key one. The governor of the American bank is often used as one who dictates global policy in times of crisis.

The professional background

Warsh previously served as a member of the Fed’s Board of Governors. Since then, Trump has returned to the White House, and has publicly expressed support for the president’s tariff policies and has also called for more aggressive interest rate cuts.

the other candidates

Along with Warsh, the leading candidates for the position were Kevin Hassett, chairman of the National Economic Council, Fed member Christopher Waller and Rick Ryder, a senior executive at the investment giant Blackrock.

the required procedure

The next step will be Senate approval. Seemingly a procedural procedure for Trump, but he could get into trouble. The reason: the criminal investigation that was recently opened against the current chairman of the Fed, Powell, due to the suspicion that he lied to Congress regarding the costs of renovating the Fed headquarters. Powell was the one who informed the public about the investigation two weeks ago, and accused that the motive behind it is political: “This unprecedented step must be seen in the broader context of the government’s threats and the ongoing pressure (to lower interest rates).”

According to the Wall Street Journal, Sen. Tom Tillis (R-North Carolina), the member of the Banking Committee that handles Fed appointments, said he would block any Trump Fed nominee until the investigation is resolved.