Sources: Trump Plans To Name Kevin Warsh As Next Fed Chair
President Trump is expected to announce Friday that he intends to appoint Kevin Warsh to lead the Federal Reserve, replacing Jerome Powell, according to a report by the New York Post.
Sources told the Post that Trump met with Warsh on Thursday and later followed up with a phone call to ask whether he would accept the position. Warsh agreed, those sources said.
Rick Reider, a senior executive at BlackRock who had emerged in recent days as a serious contender for the role, was informed Thursday that he would not be selected, according to people familiar with the matter.
The remaining leading contenders — National Economic Council director Kevin Hassett and Federal Reserve Governor Christopher Waller — have recently seen their chances diminish.
White House officials cautioned that the decision is not final and noted that Trump could still reverse course.
Speaking with reporters after his meeting with Warsh on Thursday, Trump said he planned to disclose his choice for Fed chair on Friday morning, reversing an earlier plan to wait until next week.
“It’s going to be somebody…that’s known to everybody in the financial world,” Trump said late Thursday. “A lot of people think that this is somebody that could’ve been there a few years ago.”
Trump had previously weighed selecting Warsh for the role eight years ago, before ultimately choosing Jerome Powell.
At 55, Warsh is widely viewed as an interest-rate hawk, a stance that may reassure markets concerned about the Federal Reserve’s independence. At the same time, Warsh has sharply criticized Powell — echoing Trump’s views — for expanding the money supply during the Biden years, which both men blame for fueling inflation.
The timing of the move surprised many observers and underscored Trump’s reputation for unpredictability. Just weeks ago, Kevin Hassett was widely considered the front-runner to succeed Powell, whose term expires in May.
That changed after the Post reported that prominent CEOs had expressed concern that Hassett was overly aligned with MAGA-style economic policies, raising fears of market volatility. Following that reporting, Trump began evaluating alternative candidates.
Although Trump appointed Powell early in his first term, he has intensified his criticism of the Fed over the past year, repeatedly arguing that it should slash interest rates even as inflation remains well above the central bank’s 2% target.
On Wednesday, Powell sidestepped questions about his future at the Fed and about a criminal probe initiated by the Trump administration. He did, however, offer pointed advice to whoever succeeds him.
“Stay out of elected politics, don’t get pulled into elected politics. Don’t do it,” Powell said at his regular press conference after the Fed’s latest monetary policy decision.
{Matzav.com}
