President Donald Trump has nominated former Federal Reserve Governor Kevin Warsh to head the U.S. central bank, replacing Jerome Powell when his term ends in May. Warsh, a frequent critic of the Fed, is known for advocating a "regime change" in monetary policy. His nomination comes as the White House continues to push for more influence over interest rate decisions.
"I have known Kevin for a long time and have no doubt he will go down as one of the great Fed Chairmen, maybe the best," Trump said in announcing his decision. The president added that Warsh "will never let you down."
Markets reacted swiftly to the news. Global stocks rose, the dollar strengthened, and gold prices dropped, as investors see Warsh as likely to support lower interest rates. However, analysts believe he would stop short of the more aggressive rate cuts favored by some of Trump’s other potential nominees.
The nomination, which requires Senate confirmation, faces potential hurdles. A Republican member of the Senate Banking Committee has reiterated opposition to any Fed nominee while the Department of Justice continues a criminal investigation involving Jerome Powell, which became public earlier this month.
Trump announced the nomination via social media, with no public events scheduled Friday regarding the Fed. It remains unclear how quickly the nomination will move through a closely divided Senate.
