President Donald Trump has nominated Kevin Warsh to become the next Chair of the Federal Reserve, according to an announcement made on 30 January 2026. The nomination comes as the current chair, Jerome Powell, approaches the end of his term in May 2026.

According to the White House, Trump selected Warsh because of his experience and familiarity with financial markets. Therefore, the nomination marks a significant decision for the future direction of US monetary policy.

Trump said he believes Warsh has the ability to lead the Federal Reserve effectively during a critical economic period.

As a result, the nomination has drawn immediate attention from lawmakers and financial markets.

💼 Warsh’s Experience at the Federal Reserve

Kevin Warsh previously served as a Federal Reserve governor from 2006 to 2011. During that period, he played an active role during the global financial crisis of 2008–09.

At the Federal Reserve, Warsh:

• Acted as a key link between the central bank and financial markets
• Represented the Fed at international economic meetings
• Worked closely on monetary policy decisions during market instability

After leaving the Fed, Warsh continued his involvement in economic policy. He later worked in advisory roles and maintained strong ties to financial institutions. Meanwhile, his past service has kept him visible in policy discussions.

📉 Immediate Market Reaction

Financial markets responded quickly after the nomination became public. On the same day, US stock markets moved lower, as investors assessed what a Warsh-led Federal Reserve could mean for interest rates.

At the same time:

• The US dollar strengthened
• Gold prices fell, reflecting changing expectations about monetary policy

Meanwhile, analysts noted that Warsh has previously expressed views that favour tighter control of inflation. Consequently, markets remain cautious while awaiting further clarity.

🏛️ Senate Confirmation Process Begins

The nomination now moves to the US Senate, where lawmakers will review Warsh’s record and policy views. Therefore, confirmation hearings are expected in the coming months.

Several senators have already raised concerns related to:

• Federal Reserve independence
• The relationship between the central bank and the White House
• Warsh’s views on interest rates and inflation

Lawmakers from both parties have said they will question how Warsh would protect the Fed’s independence.

However, the White House said it expects a full and transparent confirmation process.

📈 Economic Importance of the Appointment

The Federal Reserve plays a central role in setting interest rates and managing inflation. Therefore, leadership changes at the Fed often carry broad economic significance.

For now, Warsh’s nomination signals Trump’s intent to influence the direction of US monetary policy. At the same time, the final outcome depends on Senate approval.

Until confirmation, Jerome Powell will continue serving as chair.