by WorldTribune Staff, January 30, 2026 Real World News
President Donald Trump on Friday nominated Kevin Warsh to be the next chairman of the Fed in what is being seen as a fundamental challenge to the management of the U.S. economy while offering hope to potential home-buyers.
The Federal Reserve is the U.S. central bank, created by the Federal Reserve Act of 1913 to establish a monetary system that could respond effectively to stresses in the banking system.
“The transition could mark the most significant changing of the guard at the Fed since 1979, when Paul Volcker took over and dramatically reoriented the institution’s approach to inflation,” the Wall Street Journal analysis stated.
“Every chair since Alan Greenspan replaced Volcker in 1987 has emphasized continuity with his or her predecessor. Warsh has promised a clear rupture — a wholesale rethinking of the Fed’s asset holdings, policy framework, role in the economy and relationship with the executive branch.”
Warsh has expressed support for lower interest rates in recent months, aligning with Trump’s goal to maximize the economy’s growth and to make home purchasing more affordable.
While the Federal Reserve doesn’t set mortgage rates outright, its decisions play a role in the percentages lenders offer would-be homeowners.
The president has criticized Fed Chairman Jerome Powell for playing politics with interest rates to favor the Biden Administration before the 2024 election while balking at lowering rates afterwards.
The Fed cut interest rates three times last year while warning of a slowdown in the labor market, but the central bank maintained rates this week in a range between 3.5% and 3.75%.
Trump told The Wall Street Journal in December he thought rates should be at 1% or even lower.
He sharply criticized Powell after the Fed’s decision on Jan. 28: “He is hurting our Country, and its National Security.”
“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. On top of everything else, he is ‘central casting,’ and he will never let you down,” Trump said in a post to Truth Social.
“Warsh will also have to satisfy a president who has made clear he expects rates to fall — and who has shown no patience for Fed chairs who disappoint him,” the Wall Street Journal noted.
Warsh served on the Fed’s board of governors from 2006 to 2011. If confirmed by the Senate, he would succeed Jerome Powell, whose term as chair expires in mid-May.
More recently, Warsh faulted the Powell-era Federal Reserve for allowing inflation to surge in 2021–22, and argued that the Fed has strayed from its mandate by engaging on issues such as climate change and diversity initiatives. In a recent Wall Street Journal opinion piece, Warsh rejected the idea that inflation stems from strong growth or rising wages, instead blaming excessive government spending and money creation.
In announcing the Warsh nomination, Trump wrote on Truth Social:
Kevin currently serves as the Shepard Family Distinguished Visiting Fellow in Economics at the Hoover Institution, and Lecturer at the Stanford Graduate School of Business. He is a Partner of Stanley Druckenmiller at Duquesne Family Office LLC. Kevin received his A.B. from Stanford University, and J.D. from Harvard Law School. He has conducted extensive research in the field of Economics and Finance. Kevin issued an Independent Report to the Bank of England proposing reforms in the conduct of Monetary Policy in the United Kingdom. Parliament adopted the Report’s recommendations.
Kevin Warsh became the youngest Fed Governor, ever, at 35, and served as a Member of the Board of Governors of the Federal Reserve System from 2006 until 2011, as the Federal Reserve’s Representative to the Group of Twenty (G-20), and as the Board’s Emissary to the Emerging and Advanced Economies in Asia. In addition, he was Administrative Governor, managing and overseeing the Board’s operations, personnel, and financial performance.
Prior to his appointment to the Board, from 2002 until 2006, Kevin served as Special Assistant to the President for Economic Policy, and Executive Secretary of the White House National Economic Council. Previously, Kevin was a member of the Mergers & Acquisitions Department at Morgan Stanley & Co., in New York, serving as Vice President and Executive Director.
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. On top of everything else, he is “central casting,” and he will never let you down.
North Carolina Republican Sen. Thom Tillis, a member of the Senate Banking, Housing, and Urban Affairs Committee, has publicly stated that he will oppose any Trump nomination of a new Federal Reserve chair until a criminal probe of Powell by the Department of Justice is “fully” resolved.
“Kevin Warsh is a qualified nominee with a deep understanding of monetary policy. However, the Department of Justice continues to pursue a criminal investigation into Chairman Jerome Powell based on committee testimony that no reasonable person could construe as possessing criminal intent. Protecting the independence of the Federal Reserve from political interference or legal intimidation is non-negotiable,” said Tillis via X. “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.”
The Justice Department is examining Powell’s role in the Federal Reserve’s multibillion-dollar headquarters renovation, including statements he made to Congress about the project.
The Senate Banking, Housing, and Urban Affairs Committee is composed of 13 Republicans and 11 Democrats, meaning opposition from even a single Republican member could deadlock the panel and prevent Warsh’s nomination from advancing to the full Senate with a favorable recommendation.
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