The Dow Jones (DJIA) is set to open Friday in the red after President Trump announced former Fed Governor Kevin Warsh as his pick to succeed Jerome Powell. Powell’s term as Chair is set to end on May 15, although his term as a Governor extends until January 31, 2028.
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“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 said in a Truth Social post.
Who is Kevin Warsh?
Former President George W. Bush nominated Warsh to join the Fed in 2006. At 35, Warsh became the youngest person to serve on the central bank’s board.
Warsh is known in financial circles as a “hawk,” or someone who favors tighter monetary policy, prioritizes controlling inflation, and generally supports higher interest rates even at the risk of slowing economic growth. That may come as a surprise to some, as Trump has repeatedly called for lower rates.
However, Warsh has advocated for rate cuts in recent months while voicing support for Trump’s tariffs. He has also echoed Trump’s criticism of Powell. Before assuming the role, Warsh must clear the Senate Banking Committee and then be confirmed by the Senate.