Hailey Whitlock, Staff Writer

The last few months in the economic sector have been fraught with tension as President Trump frequently criticized Federal Reserve Chair Jerome Powell due to his disagreements pertaining to the rate of interest cuts. The chair, appointed by Trump himself, has faced increased scrutiny from the executive branch, making it evident that Powell’s term would not be renewed in 2026. As such, speculation began about who the president would nominate to lead the Federal Reserve when Powell’s term expires in May of 2026. 

On Jan. 30, 2026, President Trump announced his decision: Kevin Warsh. Warsh, who served on the Federal Reserve’s Board of Governors during Bush’s presidency, is no stranger to economic crises. During his previous term on the Federal Reserve’s Board of Governors, Warsh served from 2006 to 2011, overlapping with the Great Recession of 2008. Under the leadership of chair 

Ben Bernanke, he, along with other key Federal Reserve officials, took on the daunting task of assisting in managing rates during a very challenging economic time for the country. 

In fact, due to his experience during the Great Recession, Warsh was a top contender for the role of the chair of the Federal Reserve during President Trump’s first term. Instead, the president chose Powell; per ABC News, he described Powell at the time of the 2017 appointment as a “consensus builder” who “understands what it takes for the economy to grow.” 

However, now Trump saves the praise for Warsh, posting on social media per AP News: “I have known Kevin for a long period of time, and have no doubt 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.” 

He is not the only one supportive of Warsh; as reported on the official White House webpage, the Senate Committee on Banking, Housing, and Urban Affairs Chairman Tim Scott penned, “As a former Federal Reserve Governor, Kevin has deep knowledge of markets and monetary policy that will be essential in this role. Federal Reserve independence remains paramount, and I am confident Kevin will work to instill confidence and credibility in the Fed’s monetary policy.” 

Despite the praise, many wonder at the choice of Warsh; Warsh has been known to be a “hawk” when it comes to interest rates, preferring higher interest rates to slow inflation. This perspective, illustrated throughout his time on the Federal Reserve, is in direct contradiction to the preferred methods of the president calling into question why the president would pick a chair for the Federal Reserve who has proven himself to be so diametrically opposed to his preferred method. In recent years, Warsh has begun making statements more in line with cutting interest rates, as the president launched his search for the next Federal Reserve chair. Despite past evidence, Trump calmly stated that Warsh does want to cut interest rates. Analysts at Renaissance Macro Research put it simply: “Kevin Warsh has been a monetary policy hawk his entire career and most importantly during a time when the labor markets fell out of bed. His dovishness stems from convenience. The President risks getting duped.” This perspective holds that Warsh has changed his public view of interest rates to align with what the president is looking for, and will likely return to his views if selected. 

Yet to see if such a prediction is accurate, the nomination must be confirmed by the Senate. Senator Tillis, a member of the banking committee that is called to consider the nomination, has stated that he will oppose the nomination until a Justice Department investigation pertaining to Powell is resolved. It is speculated that the investigation has political motives and is a way for the president to attempt to pressure the chair into lowering rates. Per AP News, Tillis wrote that Warsh is a “qualified nominee,” yet emphasized that “protecting the independence of the Federal Reserve from political interference or legal intimidation is non-negotiable.” It is speculated that without Tillis’ support, the confirmation will not be passed. However, Trump responded by stating per ABC News, “If he doesn’t approve, we’ll just have to wait until somebody comes in who will approve it,” alluding to the end of Tillis’ term early next year.