President Donald Trump is expected to announce his choice for the next Federal Reserve chair on Friday, with Kevin M Warsh emerging as the leading contender to replace Jerome H Powell, according to several people familiar with the president’s plans.
The move would mark a pivotal shift in US monetary leadership, coming amid escalating tension between the White House and the central bank over interest rate policy. Trump has repeatedly criticized Powell for keeping borrowing costs higher than he wants and has vowed to appoint a chair aligned with his push for sharp rate cuts.
Trump met with Warsh at the White House on Thursday, fueling expectations of an imminent decision. Speaking later to reporters, the president said the pick would be someone “known to everybody in the financial world,” adding that “a lot of people think that this is somebody that could’ve been there a few years ago.” The comments were widely seen as a reference to Warsh, whom Trump nearly selected during his first term before ultimately choosing Powell.
Read Also: Donald Trump, Marjorie Taylor Greene Clash Ahead Of Midterms
Warsh previously served as a Federal Reserve governor from 2006 to 2011 after being appointed by President George W Bush. Since leaving the Fed, he has remained influential in financial circles and currently works with billionaire investor Stanley Druckenmiller. Druckenmiller is close to Treasury Secretary Scott Bessent, who led the administration’s search for Powell’s successor.
Warsh has publicly argued that interest rates should be lower and has called for what he described as a “regime change” at the Fed. His views align closely with Trump’s stance. The president has said rates should be cut to around 1 percent, compared with the current target range of 3.5 percent to 3.75 percent.
Read Also: Donald Trump Expands U.S. Entry Restrictions To 24 Countries
On Thursday, Trump sharply attacked the Fed’s latest decision to hold rates steady. In a social media post, he said Powell had “absolutely no reason” to keep borrowing costs unchanged and accused him of costing the country “Hundreds of Billions of Dollar a year in totally unnecessary and uncalled for INTEREST EXPENSE.”
The expected announcement comes after a highly public audition process that included more than 10 potential candidates. Those considered included Kevin A Hassett, director of the National Economic Council, Fed Governor Christopher J Waller, and Rick Rieder, a senior executive at BlackRock. Trump later said publicly that he preferred Hassett to remain at the White House.
Hassett’s standing reportedly weakened after the Justice Department opened a criminal investigation involving Powell and issued grand jury subpoenas to the Fed earlier this month. Powell responded in an unusual video message, accusing the administration of using legal pressure as “pretexts” to try to force interest rate cuts.
If confirmed, Warsh would take over the Fed at a moment of heightened political scrutiny and economic uncertainty, with markets watching closely for any sign that monetary policy could tilt more directly under White House influence.
