Trump Nominates Former Fed Governor Warsh to Succeed Powell as Central Bank Chair

11:14 AM EST, 01/30/2026 (MT Newswires) -- US President Donald Trump on Friday nominated Kevin Warsh to replace Federal Reserve Chair Jerome Powell, who has regularly been criticized by the US leader for taking a cautious view on lowering interest rates.

Warsh served as a governor on the central bank's board from 2006 to 2011. Before joining the Fed, he was part of the George W. Bush White House and had worked at Morgan Stanley (MS) .

"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 said in a post on Truth Social. "On top of everything else, he is 'central casting,' and he will never let you down."

Trump has repeatedly attacked Powell, whose term is set to expire in May, for not slashing the central bank's key lending rate. The Fed held interest rates steady earlier in the week after delivering three back-to-back cuts last year amid concerns about the labor market.

"Previously known as somewhat of an inflation hawk, having shifted his take on policy in line with the administration's call for a further reduction in policy, some question whether Warsh will add to concerns of (Fed) independence," Stifel said in a note.

Current Fed Governor Christopher Waller and BlackRock's (BLK) Rick Rieder were also interviewed for the top Fed role, among other candidates, Trump said in a separate post on the platform.

US equity markets declined in Friday trade, while Treasury yields were mixed.

"Markets are sorting through his views that are a mixture of dovish and hawkish in favor of curve steepening," Scotiabank said in a report emailed to MT Newswires.

Warsh's Senate confirmation is likely, but "not totally assured," Derek Holt, head of capital markets economics at Scotiabank, wrote.

Powell faces a criminal probe linked to his testimony regarding office building renovation. Powell suggested that the probe reflected continued efforts by the Trump administration to influence monetary policy.

Senator Thom Tillis said he will oppose Trump's Fed chair nomination until the Department of Justice resolves its probe.

"Protecting the independence of the (Fed) from political interference or legal intimidation is non-negotiable," Tillis said in a post on the X social media platform. "I will oppose the confirmation of any Federal Reserve nominee, including for the position of chairman, until the DOJ's inquiry into (Powell) is fully and transparently resolved."

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