The newly nominated Chairman of the Federal Reserve is Kevin Warsh, selected by President Donald Trump on January 30, 2026. This nomination marks a significant shift, as Warsh is set to succeed current Chair Jerome Powell, whose term as chair concludes in May 2026.

Background on the Nomination

President Trump announced the pick via his social media platform, Truth Social, praising Warsh as potentially one of the GREAT Fed Chairmen, maybe the best, and describing him as central casting. The decision follows months of speculation and a search process led in part by Treasury Secretary Scott Bessent, who narrowed down candidates before presenting finalists to the president.

Trump has long criticized Powell and the Federal Reserve for not cutting interest rates aggressively enough, and Warsh, a vocal critic of recent Fed policies, aligns more closely with calls for lower rates and a rethinking of monetary strategy.

This nomination requires Senate confirmation. If approved, Warsh would assume the role in May 2026. Markets reacted with some volatility, including drops in stocks and bonds in early trading, reflecting uncertainty about future policy direction.

Who Is Kevin Warsh?

Kevin Warsh, 55, brings substantial experience to the role.

He served as a Federal Reserve Governor from 2006 to 2011, nominated by President George W. Bush, during the financial crisis era.

Currently, he is a fellow at the Hoover Institution and a lecturer at Stanford Graduate School of Business.

Warsh has been a frequent commentator on economic policy, often advocating for lower interest rates, caution on heavy monetary interventions, and reforms to enhance Federal Reserve transparency and effectiveness.

He is viewed as a fiscal moderate within Republican circles but has criticized aspects of post crisis Federal Reserve actions.

His prior Federal Reserve tenure and advisory role to Trump, including being considered for the chair position in 2017 when Powell was chosen instead, make him a familiar figure in policy debates.

Implications for the Economy and Markets

The Federal Reserve chair wields enormous influence over U.S. monetary policy, including interest rate decisions that affect borrowing costs, inflation, employment, and global markets. Warsh’s nomination signals a potential pivot toward more dovish rate cutting tendencies compared to Powell’s approach, though his track record suggests a balanced, data driven style rather than radical changes.

Investors will watch Senate hearings closely for clues on his views on inflation, growth, and Federal Reserve independence.

This development underscores ongoing tensions between the executive branch and the central bank’s traditional autonomy. Stay tuned for confirmation proceedings, which could shape economic policy for years to come.

Note: This post is based on reports from major outlets like CNN, CNBC, Reuters, The New York Times, and others as of January 30, 2026. Economic nominations can evolve quickly, so check official sources for updates.