President Donald Trump is expected to announce his choice for Federal Reserve chair on Friday following a White House meeting with former Fed Governor Kevin Warsh, a long-time critic of the central bank who has called for “regime change” to restore its credibility.
Trump told reporters Thursday at the Kennedy Center that the nominee would be “somebody that could have been there a few years ago” and expressed hope it would be a “very good choice.” Warsh, 55, met with the president at the White House on Wednesday, according to a source familiar with the meeting.
In Trump’s first term, he bypassed Warsh in favor of Jerome Powell, later expressing frustration when Powell did not cut interest rates as aggressively as Trump wanted. This time, Trump has emphasized support for lower rates as a key qualification for the Fed chair role. Warsh, along with three other finalists identified by Trump officials, has advocated for more aggressive rate cuts.
The nomination requires Senate confirmation and comes amid unprecedented presidential efforts to influence the Fed. Powell has criticized the administration for attempts to intimidate the central bank, including a Department of Justice investigation and an effort to remove Fed Governor Lisa Cook, currently under review by the Supreme Court.
Powell’s current term as Fed chair ends in May. He has declined to confirm whether he will remain on the Board of Governors, a move that could limit Trump’s ability to fill another seat. Powell’s board membership continues until 2028.
Trump initially indicated he would announce his pick next week, but the decision to schedule the announcement Friday comes after his White House calendar showed only routine events, including an executive order signing and policy meetings.
Warsh, who served as Fed governor from 2006 to 2011 and was Bernanke’s liaison to Wall Street during the 2008 financial crisis, is expected to face scrutiny over his independence. He has previously advocated shrinking the Fed’s balance sheet, easing banking regulations, and redeploying liquidity into the real economy to support lower interest rates.
Other potential candidates include BlackRock’s Rick Rieder, Fed Governor Christopher Waller, and White House economic adviser Kevin Hassett, all of whom share varying degrees of alignment with Trump’s rate-cut priorities.
Wall Street watchers note Warsh’s ties to the president, including visits to Trump’s Florida estate, which could position him as a “shadow” Fed chair until Powell’s term ends. With inflation still a concern and rates currently at 3.50%-3.75%, the new chair will play a pivotal role in setting US monetary policy.
Erizia Rubyjeana
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