Trump likely to nominate Kevin Warsh as next Fed chair
30 Jan 2026

Former Federal Reserve governor Kevin Warsh is likely to be nominated by President Donald Trump as the next chair of the US central bank.

The announcement is expected to be made Friday morning (local time), according to Bloomberg.

However, they cautioned that the selection isn't final until Trump's formal announcement.

Warsh's visit and market reactions
Market response

Warsh, a former Fed governor and one of the four finalists on Trump's shortlist for the central bank leader, visited the White House on Thursday.

The news sent stocks tumbling while Treasury yields rose. The US dollar gained further ground as precious metals took a hit.

Prediction markets also saw a spike in bets earlier Thursday on Warsh's potential selection.

Trump's criteria for Fed chair nomination
Selection criteria

Other candidates on Trump's shortlist include National Economic Council Director Kevin Hassett, Fed Governor Christopher Waller, and BlackRock Inc. executive Rick Rieder.

The president hinted at his upcoming announcement without revealing the name on Thursday evening.

He said the pick won't be too surprising and will be someone known to everyone in the financial world.

Warsh's background and alignment with Trump's policies
Candidate profile

Warsh served on the US central bank's Board of Governors from 2006 to 2011 and has previously advised Trump on economic policy.

If nominated and confirmed, he would succeed Jerome Powell, whose term ends in May.

This would be a comeback for Warsh, 55, whom Trump had passed over for the top job in 2017 when he selected Powell instead.

Recent stance on interest rates
Policy shift

In recent months, Warsh has aligned himself with Trump by publicly advocating for lower interest rates. This is a departure from his previous reputation as an inflation hawk.

Trump has been looking for a candidate who would be broadly acceptable to markets and also shares his inclination to cut interest rates further and faster.