Former Federal Reserve Board member Kevin Warsh is reportedly being nominated by President Trump to take over Jerome Powell’s position as Federal Reserve Chairman.
Trump met with Warsh, who also teaches at Stanford University, on Thursday. Following their discussion, he called Warsh to offer him the role, and Warsh accepted, according to sources.
Recently, Rick Ryder, CEO of BlackRock, was viewed as the leading candidate. However, a close associate of Ryder shared that he was informed on Thursday he would not accept the role. Among the other contenders, National Economic Council Director Kevin Hassett and Federal Reserve President Christopher Waller have seen their prospects decline recently.
President Trump indicated on Thursday evening that he would announce his choice for the new Federal Reserve Chairman on Friday morning. This statement followed an earlier remark where he had hinted at making an announcement sometime next week.
Trump mentioned, “It’s going to be somebody… somebody that everyone in the financial world knows,” suggesting that this individual might be familiar due to previous involvement. He had actually considered Warsh as a potential candidate before, back when he was selecting Powell eight years ago.
At 55, Warsh is recognized as an advocate for higher interest rates, which could reassure those concerned about the Fed’s independence. Yet, he shares Trump’s strong criticism of Powell, particularly regarding the ongoing money printing and inflation issues during the Biden administration.
This sudden shift in leadership choices illustrates Trump’s unpredictable nature. Just weeks ago, Hassett was seen as the favorite to replace Powell, whose term will expire in May. However, after reports surfaced that top executives were unhappy with Hassett’s optimistic portrayal of the economy, Trump began exploring other options.
White House officials have cautioned that Trump could still change his mind at the last moment, and press representatives haven’t yet provided further comments.
