Trump Nominates Kevin Warsh for Federal Reserve Chair

Trump Nominates Kevin Warsh for Federal Reserve Chair

President Trump nominates former Fed Governor Kevin Warsh to succeed Jerome Powell as Federal Reserve Chair. Futures fell 0.5%, dollar surged, and Treasury yields climbed on the announcement.

Trump made the announcement Friday morning on social media: "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."

Who is Kevin Warsh?

Warsh, 55, served as a Fed Governor from February 2006 until March 2011, nominated by George W. Bush. Trump passed him over for the top job in 2017 when he selected Powell. This marks a comeback for Warsh, who was selected from a shortlist that included BlackRock's Rick Rieder, current Fed Governor Christopher Waller, and NEC director Kevin Hassett.

Market Reaction

The nomination triggered immediate moves:

• U.S. stock futures fell 0.5%
• U.S. dollar surged against major currencies
• 10-year Treasury yields climbed to 4.27%

Markets interpret Warsh as a hawkish choice, which explains the dollar strength and yield spike. The key question: will he maintain that stance once in the chair, or will Trump pressure toward easier policy?

Confirmation Path

Warsh faces a potentially complicated Senate confirmation. Senator Thom Tillis (R-NC), who sits on the Banking Committee, has vowed to block Trump's Fed nominees until the DOJ resolves an investigation into the Fed's headquarters renovation. If confirmed, Warsh would succeed Powell in May.

What Traders Should Watch

• Senate Banking Committee hearings and Tillis's stance
• Warsh's public statements on rates and inflation
• Fed funds futures repricing -- currently pricing max 2 cuts in 2026
• Dollar and yield moves as confirmation process unfolds

Sources: CNBC, Bloomberg

TGIF! Have a good weekend!

-- Fi
"The market can remain irrational longer than you can remain solvent, but central bankers can remain stubborn longer than markets expect."