President Donald Trump has nominated longtime ally Kevin Warsh to be the next chairman of the Federal Reserve, succeeding the independent-minded Jerome Powell.
Warsh, 55, is a financier and bank executive who previously served as a member of the Federal Reserve Board of Governors. He is married to the American billionaire heiress and businesswoman Jane Lauder, whose grandparents founded the Estée Lauder cosmetics company. They met at Stanford University.
Trump said at the Melania screening on Thursday he would announce his new chair appointee on Friday morning, but stopped short of naming them. In a Truth Social post on Friday morning, he confirmed that Warsh would be the man to succeed the incumbent, whom Trump has dubbed Jerome “Too Late” Powell over his continued refusal to bend to the president’s will.
“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,” the 79-year-old declared in typical caps-lock fashion.
He rolled off his new pick’s academic achievements and prowess before adding, “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. Congratulations Kevin! PRESIDENT DONALD J. TRUMP.”
The confirmation connected the dots on Trump’s teasing from Thursday evening. “A lot of people think that this is somebody that could have been there a few years ago,” the president said of the mystery candidate.
Warsh interviewed for the job in 2017, before Trump selected Powell. “It’s going to be somebody that is very respected, somebody that’s known to everybody in the financial world,” Trump had said.
The president has repeatedly clashed with Powell, the current chair, and has threatened to fire him. Powell’s term as Fed chair ends in May.
The Wall Street Journal reports Trump has long expressed remorse over his decision. “Kevin, I could have used you a little bit here. Why weren’t you more forceful when you wanted that job?” Trump in a 2020 ceremony where Warsh was in the audience. “I would have been very happy with you.”
BlackRock money manager Rick Reider was also being considered for the role, but the New York Post reported he was told on Thursday he would not get the position.
National Economic Council Chair Kevin Hassett had also been in the mix to replace Powell. Explaining his decision to overlook Hassett for the role, Trump wrote in another Friday Truth Social post: “Their [sic] was great speculation that highly respected Kevin Hassett was going to be named Chairman of the Fed, and a great Chairman he would have been but, quite honestly, he is doing such an outstanding job working with me and my team at the White House, that I just didn’t want to let him go.”
Trump continued: “Kevin is indescribably good so, as the expression goes, ‘if you can’t do better, don’t try to fix it!’ Thank you Kevin for doing such a great job!”
He later added: “Christopher Waller, Rick Rieder, and others, were interviewed for the Fed position. They all would have been outstanding, and have a great and unlimited future with ‘TRUMP.’ Such amazing talent in our Country.”
CNN reported that Warsh met with Trump for a formal interview in December, which impressed the president’s advisers. Trump also noted that Warsh “looked the part.”
Warsh served as a Fed governor for five years after being nominated by President George W. Bush. He was also in line to possibly take the Treasury secretary role that eventually went to Scott Bessent.
The Fed said Wednesday it had voted to hold its rates steady, the first time since July that rates have not been cut, as Powell warned that it would be difficult for the central bank to regain its credibility if it lost its independence.
In reaction, Trump called Powell a “moron” in a Truth Social tirade.
