Trump Taps "Central Casting" Pick Kevin Warsh for Fed Chair, Signaling Rate Cuts Without "Pressure"

Washington, D.C. — President Donald Trump officially announced on Friday, January 30, 2026, that he will nominate former Federal Reserve Governor Kevin Warsh to succeed Jerome Powell as Chair of the Federal Reserve.

The nomination marks the culmination of a months-long pressure campaign against current Chair Powell, whom Trump has frequently criticized for keeping interest rates too high. In a post on Truth Social, Trump praised Warsh as a candidate straight out of "central casting," predicting he "will go down as one of the GREAT Fed Chairmen, maybe the best".

A Shift in Policy Without the "Pressure"?

The announcement carries significant implications for monetary policy. While Trump has been vocal about demanding lower rates, he told reporters on Friday that he did not explicitly ask Warsh to commit to cuts as a condition of the job, calling such a request "inappropriate". This aligns with the sentiment that Warsh may deliver the desired "easier money" policy naturally, without requiring direct pressure from the White House.

Warsh, traditionally viewed as a monetary "hawk" during his previous tenure at the Fed (2006–2011), has recently aligned himself more closely with Trump's economic vision. In recent months, he has argued that the administration's deregulatory agenda and focus on productivity would lower inflation, creating room for the central bank to cut rates aggressively.

Market Reaction and the Path Ahead

Investors reacted cautiously to the news, with stocks dipping and long-term bond yields rising as markets digested the potential for a new regime at the central bank. Analysts note that while Warsh is seen as credible, his recent pivot toward supporting rate cuts will be scrutinized during Senate confirmation hearings.

If confirmed, Warsh would take the helm in May 2026, tasked with navigating a complex economic landscape where the President has made his preference for "substantially lower" interest rates unmistakably clear.