Trump names former Fed Guv Kevin Warsh to replace Powell as Fed chair

United States (US) President Donald Trump on Friday said he had chosen former Federal Reserve governor Kevin Warsh to lead the Federal Reserve once Chair Jerome Powell steps down in May.

 

"I am pleased to announce that I am nominating Kevin Warsh to be the Chairman of the Board of Governors of the Federal Reserve system. Kevin currently serves as the Shepard Family Distinguished Visiting Fellow in Economics at the Hoover Institution, and as a Lecturer at the Stanford Graduate School of Business. He is a Partner of Stanley Druckenmiller at Duquesne Family Office LLC," Trump said in a post on Truth Social.

 

 

"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. On top of everything else, he is "central casting," and he will never let you down," he added. 

 

Trump's nomination, however, needs approval from the US Senate, following which 55-year-old Warsh could return to the central bank's top post.  

The nomination comes as Trump has been criticising Powell for not cutting interest rates quickly enough. Recent moves by Trump have also raised concerns about pressure on the central bank’s independence. In January, the Justice Department opened a criminal investigation into Powell, a step the Fed chair said was being used to influence monetary policy decisions.