Breaking: Trump Selects Prominent Federal Reserve Critic to Replace Jerome Powell as Its Chair

President Donald Trump on Friday unveiled his choice to succeed Jerome Powell as chairman of the Federal Reserve Board of Governors.

“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,” Trump posted on Truth Social.

Warsh “has the respect and credibility of the financial markets,” David Bahnsen, chief investment officer of The Bahnsen Group, said, according to CNBC.

“There was no person who was going to get this job who wasn’t going to be cutting rates in the short term. However, I believe longer term he will be a credible candidate,” Bahnsen said.

Bahnsen referred to Trump’s desire to lower interest rates to spur further economic activity, which Powell has opposed.

Last year, Warsh said the Federal Reserve needed “regime change.”.

“The credibility deficit lies with the incumbents that are at the Fed, in my view,” he said in July.

Warsh’s nomination must be confirmed by the Senate.

Republican Sen. Tim Scott of South Carolina, the chair of the Senate Banking Committee, said Warsh has a “deep knowledge of markets and monetary policy that will be essential in this role.”

″The Federal Reserve’s decisions touch every American household, from mortgage rates to retirement savings, and President Trump has been clear that bringing accountability and credibility to the Federal Reserve is a priority, and his nomination of Kevin Warsh reflects that focus,” Scott said.

Trump critic and Republican Sen. Thom Tillis of North Carolina said he will oppose the nomination until an existing Department of Justice investigation into Powell, reportedly linked to the costs of the new Federal Reserve building project, is resolved.

“Kevin Warsh is a qualified nominee with a deep understanding of monetary policy. However, the Department of Justice continues to pursue a criminal investigation into Chairman Jerome Powell based on committee testimony that no reasonable person could construe as possessing criminal intent,” Tillis said.

“My position has not changed: I will oppose the confirmation of any Federal Reserve nominee, including for the position of Chairman, until the DOJ’s inquiry into Chairman Powell is fully and transparently resolved,” he added.

At Hoover’s Finishing the Job and New Challenges conference, Kevin Warsh argued that inflation largely reflects the choices of central bankers—not external shocks. He called for a return to rules-based policy, credibility, and a smaller balance sheet to restore economic stability pic.twitter.com/zxv9GquoeS

— Hoover Institution (@HooverInst) May 9, 2025

In his Truth Social post announcing Warsh’s nomination, Trump said he “currently serves as the Shepard Family Distinguished Visiting Fellow in Economics at the Hoover Institution, and Lecturer at the Stanford Graduate School of Business.”

“He is a Partner of Stanley Druckenmiller at Duquesne Family Office LLC. Kevin received his A.B. from Stanford University, and J.D. from Harvard Law School. He has conducted extensive research in the field of Economics and Finance. Kevin issued an Independent Report to the Bank of England proposing reforms in the conduct of Monetary Policy in the United Kingdom. Parliament adopted the Report’s recommendations,” Trump wrote.

“Kevin Warsh became the youngest Fed Governor, ever, at 35, and served as a Member of the Board of Governors of the Federal Reserve System from 2006 until 2011, as the Federal Reserve’s Representative to the Group of Twenty (G-20), and as the Board’s Emissary to the Emerging and Advanced Economies in Asia. In addition, he was Administrative Governor, managing and overseeing the Board’s operations, personnel, and financial performance.”

“Prior to his appointment to the Board, from 2002 until 2006, Kevin served as Special Assistant to the President for Economic Policy, and Executive Secretary of the White House National Economic Council. Previously, Kevin was a member of the Mergers & Acquisitions Department at Morgan Stanley & Co., in New York, serving as Vice President and Executive Director.”

“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,” Trump continued.

A report in The Wall Street Journal noted that there were four finalists that included Warsh,  Rick Rieder, a senior executive at BlackRock. Kevin Hassett, director of the White House National Economic Council; and Christopher Waller, a current Fed governor Trump appointed in 2020.

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