According to CNN, President Donald Trump is expected to announce on Friday that he will nominate Kevin Warsh as the next chair of the Federal Reserve. Trump has been thinking about this for months, he narrowed the list down to four people, he interviewed all four, and then he was still deciding, people familiar with the process said. On Thursday, Warsh met with Trump at the White House, and officials said the announcement preparations were already underway. People said Trump has been changing his mind on who to pick several times over the last few weeks, and even Thursday night it was not completely settled until later in the day.
Trump’s Decision Process for Federal Reserve Chair
Trump told reporters while arriving at the premiere of his wife Melania’s documentary that he would be announcing “a really great choice” tomorrow, but he did not say Warsh’s name, and he moved on quickly to other topics, people said. Officials also said nothing is final until Trump announces it, and several people said Trump has been thinking about this decision a lot, back and forth, and talking to advisors, and trying to make sure it is the right pick.
Warsh served as a Fed governor for five years after being nominated by President George W. Bush. He has also been considered by Trump for other top economic roles, both in his first term and the second term, and at one point was seen as a possible Treasury secretary pick before Scott Bessent was chosen. Sources said Warsh’s December interview went well, Trump told his advisors he “looked the part,” and Warsh impressed Trump. People familiar said Warsh has been on Trump’s radar for years and this is not a sudden choice, that it has been long discussed, and debated, and considered.
Other candidates included National Economic Council Director Kevin Hassett, BlackRock executive Rick Rieder, and Fed Governor Christopher Waller. Trump interviewed all four in person, and the selection process was concluded only after careful consideration, officials said.
Market and Global Implications of Warsh’s Nomination
Trump said the nominee will be “very respected, known to everybody in the financial world,” and analysts said this could affect global markets, investor confidence, international lending, trade relations, and interest rates. Some said it may influence relations with China and could have consequences beyond the United States.
Trump has criticized Fed Chair Jerome Powell in his second term and the Fed more broadly, and Warsh’s nomination could signal a shift in policy or approach. The White House and Warsh did not comment immediately, and markets are waiting for the announcement. Experts said the nomination could have political, economic, and global financial implications.
Source: CNN