Trump taps Kevin Warsh as nominee for next Fed chair

ISTANBUL

US President Donald Trump announced Friday that he has picked former Federal Reserve governor Kevin Warsh as his nominee for the next Fed chair, saying he will be “one of the GREAT Fed Chairmen, maybe the best.”

“I am pleased to announce that I am nominating Kevin Warsh to be the CHAIRMAN OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM,” Trump wrote on his Truth Social platform.

“I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best,” he added.

Calling Warsh “central casting,” Trump said he will never “let you down.”

In a separate post, Trump thanked White House National Economic Council Director Kevin Hassett “for doing such a great job” on Wednesday, after Hassett had emerged as a leading contender for the Fed chair position.

"Their was great speculation that highly respected Kevin Hassett was going to be named Chairman of the Fed, and a great Chairman he would have been but, quite honestly, he is doing such an outstanding job working with me and my team at the White House, that I just didn’t want to let him go," Trump said.

"Kevin is indescribably good so, as the expression goes, 'if you can’t do better, don’t try to fix it!'" he noted.

Trump also said that BlackRock executive Rick Rieder, Fed Governor Christopher Waller and other candidates were interviewed for the position. “They all would have been outstanding, and have a great and unlimited future with ‘TRUMP.’ Such amazing talent in our Country.”

Kevin Warsh advised Trump on economic strategy and previously served on the Board of Governors of the US central bank from 2006 to 2011.

If nominated and confirmed, Warsh would replace Jerome Powell, whose term as Fed chair expires in May.

The 55-year-old would return to the spotlight after Powell was chosen by Trump in 2017 for the top post.

Despite his earlier reputation as an inflation hawk, Warsh has recently aligned with Trump by publicly advocating lower interest rates.

The confirmation process could prove difficult, however, as some Republican senators have pledged to block any Fed nominations until the US Justice Department completes an inquiry into the central bank’s renovation of its Washington headquarters.

Concerns over risks to the Fed’s independence have intensified amid the probe, which includes scrutiny of Powell’s testimony to Congress.

Republican Sen. Thom Tillis of North Carolina, who serves on the Senate Banking Committee, was among those voicing concern over the investigation.

“The Fed noms are not going to change until the investigation and potential indictment of Chair Powell is completed,” Tillis told reporters at the US Capitol Thursday. “DOJ’s got to decide when I lift those holds. It gets lifted the day that case is adjudicated or withdrawn.”

Senate Majority Leader John Thune said “probably not” when asked Thursday night whether a Fed chair nominee could be confirmed without Tillis’ support.

The nomination follows Trump’s sustained criticism of Powell, whom he repeatedly attacked as the Fed kept interest rates steady last year before cutting them at three meetings later in the year.

Trump has repeatedly said he would appoint a Fed chair who favors lower interest rates. With rates currently between 3.5% and 3.75%, the president has argued the US should have the lowest interest rates in the world and has called for cuts to 1%.