DevelopingUpdated Apr 27, 2026

Trump Nominates Kevin Warsh as Fed Chair to Succeed Powell in May 2026

President Donald Trump has nominated Kevin Warsh, a former Federal Reserve Governor, to succeed Jerome Powell as Federal Reserve Chair when Powell's term expires in May 2026. Warsh's nomination comes amid ongoing tensions between Trump and Powell over interest rate policy, with Trump having publicly criticized Powell for not cutting rates quickly enough. The confirmation process faces potential delays, as some senators are blocking Fed nominations until the Justice Department drops a criminal probe into Powell, and Warsh's Senate hearing has already been postponed. According to a Reuters poll, economists expect the Fed to hold rates steady through Powell's remaining tenure but anticipate a rate cut in June under new leadership. Warsh, who would become the wealthiest Fed chair if confirmed with assets exceeding $100 million, now awaits Senate confirmation in what represents one of the most important appointments of Trump's presidency.

Fed rates on hold, Powell's term ending May 15 — is Warsh a central banker or a political puppet?

Cut Rates — Confirm WarshLower borrowing costs are warranted given slowing growth, tariff-driven consumer strain, and a labor market that has stabilized near 4.4% unemployment. Warsh's market credibility and prior Fed experience make him the right steward for this transition.

Hold Rates — Protect Fed IndependenceCutting rates prematurely risks entrenching tariff-fueled inflation, and the political pressure campaign against Powell — including a DOJ criminal probe — has set a dangerous precedent that threatens the Fed's constitutionally mandated independence.

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