A. Rahman
President Donald Trump has nominated Kevin Warsh to become the next chair of the Federal Reserve, a choice that is already reshaping discussions in financial markets and Washington.
Warsh, 55, previously served as a governor on the Federal Reserve Board and remains a respected figure in economic policy circles. He was one of the contenders for the Fed’s top job in 2017 before Trump ultimately chose Jerome Powell. Now, as Powell’s term nears its end in May, Trump has selected Warsh to succeed him, saying he believes Warsh can help guide monetary policy at a critical time.
Trump praised Warsh on social media, calling him a capable leader with deep experience in both government and markets and saying he “will go down as one of the great Fed chairmen.” The president also reiterated his desire for lower interest rates to support growth, even though inflation remains above the central bank’s typical target.
Wall Street reacted quickly to the nomination. Prices of gold and silver plunged sharply after the announcement, with gold futures dropping significantly as investors interpreted Warsh’s selection as a move that could lead to lower interest rates and decreased demand for traditional safe‑haven assets.
Economists and lawmakers have offered mixed reactions to the pick. Some business leaders praised Warsh’s experience and credibility, suggesting his background could help maintain market stability. Others, particularly some legislators, signaled that the nomination may face hurdles during Senate confirmation hearings, especially amid broader concerns over the Federal Reserve’s independence and how it will address emerging issues like artificial intelligence’s impact on the economy.
Warsh served on the Fed board from 2006 to 2011 and later became a fellow at Stanford University’s Hoover Institution. He has previously criticized some of the Fed’s policies, arguing for a narrower focus on inflation control and questioning portions of the central bank’s broad interventions.
His nomination comes at a time when the Fed is under intense scrutiny for how it handles interest rates, inflation pressures and the influence of technological shifts like AI on productivity and economic growth. Analysts say Warsh’s record suggests he may be willing to support lower rates over time, though exactly how he would balance that with inflation concerns remains a subject of debate.
The Senate must confirm Warsh’s nomination for him to officially take command of the Federal Reserve. Some senators have already suggested they may delay the confirmation process, citing ongoing issues related to oversight and broader concerns about the Fed’s role in the economy.
Summary:
President Donald Trump has nominated Kevin Warsh as the next Federal Reserve chair to replace Jerome Powell. Warsh’s nomination prompted a sharp drop in gold and silver prices and sparked debate among economists, investors and lawmakers. His experience as a former Fed governor and scholar gives him credibility, but questions remain about how he’ll handle interest rate policy and maintain the Fed’s independence. The Senate must confirm his nomination.
