Who is Kevin Warsh, Trump’s pick to lead the Federal Reserve? 

President Donald Trump has nominated Kevin Warsh to serve as the next chair of the Federal Reserve — but with politicians on both sides of the aisle vowing to block any Trump Fed nominee from moving forward, Warsh's confirmation is not guaranteed.

Trump made his announcement in a Jan. 30 post on social media. The move follows months of speculation about who the president would pick to replace Jerome Powell, whose term as Fed chair ends in May, and weeks after Powell became the focus of a U.S. Department of Justice (DOJ) investigation.

"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," Trump wrote.

Who is Kevin Warsh?

Warsh is not new to the Fed, having previously served on the Board of Governors from 2006 until his resignation in 2011.

He began his career in the mid-1990s working as a financial adviser in Morgan Stanley's M&A department. He joined the Bush administration in 2002, where he served as an executive secretary and special assistant to the president at the National Economic Council.

After leaving the Fed, Warsh became a distinguished visiting fellow at Stanford University, his alma mater, and a lecturer for its Graduate School of Business.

What Warsh has said about the Fed's monetary policy moves

Warsh, who was reportedly on Trump's short list of Fed chair nominees since last summer, told CNBC in July that the central bank's hesitancy to cut short-term interest rates was "a mark against them." The Fed made its first of three consecutive rate cuts in 2025 two months later.

"One of the reasons why the president, I think, is right to be pushing the Fed publicly is we need regime change in the conduct of policy," Warsh said, adding that the central bank's "credibility deficit lies with the incumbents that are at the Fed."

Possible hurdles to confirmation

The Senate Banking Committee will review the nomination, and if it decides to advance Trump's pick, the full Senate will vote on Warsh's confirmation.

While Committee Chair Tim Scott said he looks forward "to leading a thoughtful, timely confirmation process," two other committee members have vowed to vote against the advancement of any Trump nominee.

The two senators — Democrat Elizabeth Warren of Massachusetts and Republican Thom Tillis of North Carolina — made their stances clear after Powell suggested that the DOJ's investigation into renovation plans for the Fed's headquarters was a "pretext" for the administration's attempts to guide monetary policy.

In a Jan. 30 statement, Tillis described Warsh as "a qualified nominee with a deep understanding of monetary policy" but reiterated his concerns about the DOJ's investigation.

"My position has not changed: I will oppose the confirmation of any Federal Reserve nominee, including for the position of Chairman, until the DOJ's inquiry into Chairman Powell is fully and transparently resolved," Tillis said.

In a separate statement, Warren appeared to question Warsh's ability to lead the Fed without political interference, saying he "apparently passed the loyalty test." Warren urged her colleagues to refrain from advancing his nomination.

What economists are saying about Trump's pick

Given his past experience at the Fed, Warsh's nomination isn't likely to rattle the financial markets, at least not immediately, according to Chen Zhao, Redfin's head of economics research.

"The housing market should expect mortgage rates to hold steady; this nomination won't push rates up or down," Zhao wrote.

If Warsh is confirmed, however, he will be joining a central bank that "is not ideologically unified," and he may not have as much "power and sway" as past Fed chairs, noted Realtor.com Chief Economist Jake Krimmel.

The nomination of Warsh — who "is likely to push for cuts" in line with the president's goals — "will naturally be read as a signal that rate cuts are on the horizon," Krimmel said, but that reading may be "too simple" and focused on short-term realities, he added.

During a Jan. 29 Cabinet meeting, Trump reiterated his determination to see rates lowered in comments that reinforced his opposition to lower home prices.

"I don't want to drive housing prices down," Trump said. "I want to drive housing prices up for people that own their homes. And they can be sure that's what's going to happen."

A pivotal moment for Fed independence?

Concerns about the central bank's ability to operate independently have been rising over the past year amid political pressures to lower short-term interest rates.

Trump repeatedly threatened to fire Powell in 2025 when the Fed did not cut interest rates as quickly as the president wanted, and Trump also became the first president in the Fed's 113-year history to try to fire a sitting Fed governor when he attempted to remove Lisa Cook in August.

New concerns about the Fed's independence arose earlier this month as a global group of central bankers joined former Fed chairs, U.S. Treasury Department secretaries and White House economic advisors in condemning the DOJ's investigation into Powell.

What's next for Powell?

Powell was appointed by Trump to lead the Fed in 2018. His term as chair ends in May — but he could stay on the Board of Governors through January 2028, which would prevent Trump from nominating a replacement until the end of his own term as president.

Powell has not publicly stated whether he intends to remain at the central bank after a new chair is installed, but he has shared his hopes for the next Fed leader. 

Prior to Trump's announcement, Powell made two recommendations when asked what advice he would offer his successor.

"One is, stay out of elected politics," Powell urged during a Jan. 28 press conference. But the next chair should continue the central bank's "affirmative, regular obligation" of visiting Congress to offer insight into monetary policy decisions and answer elected officials' questions.

"If you want democratic legitimacy, you earn it by your interactions with our elected overseers," he said.