president donald trump said Friday that he will nominate Kevin Warsh to lead the Federal Reserve, succeeding Jerome Powell when his term expires in May.

The move comes at a turbulent time for the Federal Reserve, as the Justice Department conducts a criminal investigation into Powell, the Supreme Court weighs limits on the Fed’s independence and the cost of living tests Trump’s. economic agenda

“I have known Kevin for a long time and I have no doubt that he will go down as one of the GREAT Fed Chairs, perhaps the best,” Trump wrote on Truth Social. “On top of everything else, it’s ‘casting central’ and will never let you down. Congratulations Kevin!”

If confirmed by the Senate, Warsh would assume one of the most powerful positions in US economic policymaking, with direct influence over interest rate decisions and the central bank’s battle against inflation.

FROM MORTGAGES TO CAR LOANS: HOW AFFAIRS GO UP AND DOWN WITH THE FED

Former Federal Reserve Governor Kevin Warsh will return to lead the central bank. (David Paul Morris/Bloomberg via Getty Images)

The Federal Reservewhich sets borrowing costs and shapes inflation, exerts enormous influence over Americans’ daily affordability.

Warsh’s potential ascension to the Fed’s top job comes as Trump has often made Powell a lightning rod for economic criticism, with tensions between the two fraying over interest rate and broader decisions. monetary policy.

FROM MORTGAGES TO CAR LOANS: HOW AFFAIRS GO UP AND DOWN WITH THE FED

Trump has called on the Fed to cut rates, which he says could save the nation “hundreds of billions of dollars.”

Powell kept the benchmark rate between 4.25% and 4.5% as the Fed took a wait-and-see approach to assess the impact of the president’s tariffs. Although the central bank has since cut rates, Trump’s attacks on Powell, whom he appointed in 2017, have increasingly taken on a personal tone, including the use of mocking nicknames.

TRUMP VS THE FEDERAL RESERVE: HOW THE SHOCK REACHED UNCHARTED TERRITORY

President Donald Trump walks behind Federal Reserve Chairman Jerome Powell during an announcement in the Rose Garden of the White House in Washington, DC on November 2, 2017. (Olivier Douliery/Bloomberg/Getty Images)

Powell, widely regarded as one of the most crisis-tested Federal Reserve chairmen in modern US history, built his career as a lawyer and investment banker in New York before entering public service in the administration of President George HW Bush. He joined the Federal Reserve Board of Governors in 2012 and was tapped to lead the central bank in 2017.

POWELL REVEALS WHAT IT WOULD TAKE TO GIVE UP FOOD AS THE PRESSURE RAISES

Like Powell, Warsh is not an economist by training. Instead, he brings a background in law and finance that has shaped his views on the Federal Reserve.

He earned a bachelor’s degree in public policy from Stanford University in 1992 and a law degree from Harvard in 1995. He built his career at Morgan Stanley and, at age 35, became the youngest person to serve on the Fed’s board in 2006.

Kevin Warsh, former Federal Reserve Governor, during the spring meetings of the International Monetary Fund and the World Bank in Washington, DC on April 25, 2025. (Tierney Cross/Bloomberg via Getty Images)

Although he left the post in 2011, he was widely recognized as the Fed’s key liaison to Wall Street during the 2008 financial crisis. He previously served in the Bush administration as special assistant to the president for economic policy and executive secretary of the National Economic Council.

Some business leaders have framed Warsh’s nomination as a watershed moment for US economic and energy policy. Chevron CEO Mike Wirth said the country is facing a “tipping point,” pointing to increased energy demand from artificial intelligence, energy security concerns and changing global geopolitics.

“Having known Kevin Warsh for decades, he is uniquely prepared, with judgment, experience and temperament, to serve our country at this critical time,” Wirth said.

CLICK HERE TO GET FOX BUSINESS ON THE GO

Warsh was one of Trump’s top candidates to replace the chairman of the Federal Reserve Janet Yellen in 2017. However, Trump ultimately nominated Powell for the role.

Most recently, Warsh was considered a candidate for Treasury secretary in the second Trump administration before the president chose the former hedge fund boss. Scott Bessant.

Before landing Warsh, Trump was also considering National Economic Council Director Kevin Hassett, Federal Reserve Governor Christopher Waller and BlackRock Global Fixed Income Chief Investment Officer Rick Rieder. Trump, in a Truth Social post, said all would have been “excellent” choices for Fed chairman.