Trump Nominates Kevin Warsh As Next Fed Chair: ‘He Will Never Let You Down’

• Warsh had emerged as a front-runner for the Fed Chair position after President Trump indicated that he would prefer to keep White House National Economic Advisor Kevin Hassett in his current position.
• Warsh’s nomination drew a congratulatory message from Mohamed El-Erian, Chief Economic Advisor at Allianz.
• In a post on X, El-Erian said that Warsh’s nomination bodes well for the central bank’s independence, as well as the effectiveness of its policies.

President Donald Trump on Friday nominated Kevin Warsh as the next Federal Reserve Chair.

Trump announced his nomination in a post on Truth Social, listing the various positions held by Warsh so far.

“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,” he said.

In Line With Expectations

Warsh had emerged as a front-runner for the Fed Chair position after President Trump indicated that he would prefer to keep White House National Economic Advisor Kevin Hassett in his current position.

Warsh’s nomination drew a congratulatory message from Mohamed El-Erian, Chief Economic Advisor at Allianz. In a post on X, El-Erian said that Warsh’s nomination bodes well for the central bank’s independence, as well as the effectiveness of its policies.

“Having observed and interacted with Kevin during his prior tenure as Fed Governor, in academia, and as a fellow member of the Group of Thirty (G-30), I believe he brings a strong mix of deep expertise, broad experience, and sharp communication skills,” he said.

Warsh’s Prior Experience

Warsh, a former Fed governor, is seen as a policy hawk with close ties to Wall Street. In addition to his experience at the central bank, the 55-year-old has served as the Fed’s emissary to emerging and advanced economies in Asia.

He was also a member of Morgan Stanley’s mergers and acquisitions team, having served as the firm’s Vice President and Executive Director.

Warsh is currently a partner of Stanley Druckenmiller at Duquesne Family Office LLC, and he also serves on the board of directors of United Parcel Service Inc. (UPS) and Coupang Inc. (CPNG).

Moving On From Powell

Warsh’s nomination should bring to a close President Trump’s criticism of outgoing Fed Chair Jerome Powell’s monetary policy direction. While the President has called for rate cuts several times since taking the oath in January 2025, Powell and the Federal Open Market Committee (FOMC) have only delivered three 25-basis-point cuts so far.

President Trump’s most-recent criticism of Powell came on Thursday, after the Fed decided to take a pause following the FOMC’s meeting earlier this week.

Meanwhile, U.S. equities declined in Friday’s pre-market trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down by 0.37%, the Invesco QQQ Trust ETF (QQQ) fell 0.52%, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) declined 0.35%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bearish’ territory.

The iShares 20+ Year Treasury Bond ETF (TLT) was down by 0.4% at the time of writing, while the iShares 7-10 Year Treasury Bond ETF (IEF) fell 0.08%.

Also See: SNDK Stock Soars Pre-Market Following Sandisk’s Blowout Q2 Report, Analyst Says Demand Is 'Exceptionally' Strong

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