By Keerthi Ramesh,
President Donald Trump is prepared to nominate former Federal Reserve Governor Kevin Warsh to lead the U.S. central bank, a decision expected as early as Friday that could shape monetary policy and market expectations for years to come.
After months of deliberation and reviews of multiple contenders, Trump told reporters Thursday night that he had settled on a choice he described as “very respected” in financial circles and planned to reveal the nomination Friday morning. The president’s remarks came at the premiere of a documentary about first lady Melania Trump, where he declined to publicly name his pick but signaled confidence in the decision ahead.
Warsh, 58, served on the Federal Reserve’s Board of Governors from 2006 to 2011 after being appointed by President George W. Bush. His tenure spanned the global financial crisis, giving him a reputation as an experienced policymaker with deep institutional knowledge. Trump has long mentioned Warsh as a potential choice, and the administration’s preparation for his nomination suggests strong internal support.
“He looked the part,” one administration official said about Warsh’s interview with the president, according to people familiar with the process. These advisers cautioned that nothing is official until Trump formally announces it, but White House staff are moving ahead with preparations consistent with Warsh’s selection.
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In recent weeks, Warsh emerged as a leading candidate alongside several others including Fed Governor Christopher Waller, National Economic Council Director Kevin Hassett and BlackRock executive Rick Rieder.
Betting markets and financial analysts said Warsh’s odds of securing the nomination soared as Trump closed in on a decision, reflecting a growing consensus that he could bring credibility and continuity to the role.
Investors, unsettled by uncertainty over the central bank’s direction, reacted positively in early trading Friday to the likelihood of Warsh’s nomination. The U.S. dollar strengthened against major currencies as traders priced in what they see as a steadier leadership transition at the Fed.
Current Federal Reserve Chair Jerome Powell’s term is set to expire in May. Trump has publicly criticized Powell’s cautious approach to interest rate adjustments, at times arguing that borrowing costs have remained too high. While Powell remains on the board through 2028, the chairmanship transition underscores tensions between the White House and the central bank over the pace and scope of monetary easing.
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Warsh’s views are seen as broadly aligned with Trump’s desire for lower rates, though his long-standing reputation as a thoughtful policymaker could make him a more measured steward of the Fed’s dual mandate to control inflation and support employment.
If Trump formally nominates Warsh, the next hurdle will be Senate confirmation. The process could spotlight broader debates about Federal Reserve independence, political influence over monetary policy and the direction of the U.S. economy as inflation, labor markets and global pressures continue to challenge policymakers.