30.01.2026 15:20
The candidate for the Fed chair by President Donald Trump has been announced. President Trump has nominated former Fed Board member Kevin Warsh for the Fed chairmanship. Warsh is remembered for his role in the 2008 global financial crisis as well as his criticisms of loose monetary policies thereafter.
U.S. President Donald Trump officially announced the new Fed chair nominee that the world has been eagerly awaiting. Trump shared on his social media account that he has nominated Kevin Warsh for the position of Chair of the Fed Board of Governors.
In his statement, Trump noted that Warsh is currently serving as the Hoover Institution's Sheppard Family Distinguished Visiting Fellow in economics and teaches at Stanford University's Graduate School of Business. He also mentioned that Warsh is working as a partner with Stanley Druckenmiller at Duquesne Family Office LLC.
Trump also touched on Kevin Warsh's educational background, stating that Warsh completed his undergraduate education at Stanford University and his law degree at Harvard Law School. Emphasizing that Warsh has conducted extensive research in economics and finance, Trump reminded that an independent report he presented to the Bank of England (BoE), which included reform proposals for monetary policy practices, was adopted by the British Parliament.
ONE OF THE YOUNGEST MANAGERS IN FED HISTORY
Trump stated that Kevin Warsh, at 35 years old, is the youngest board member in Fed history, expressing that Warsh served on the Fed Board of Governors from 2006 to 2011. During this period, he represented the Fed at the G20 and served as an envoy responsible for relations with developed and developing economies in Asia.
Trump noted that Warsh also took on the administrative management of the Fed Board, overseeing the institution's operations, personnel structure, and financial performance, and mentioned that before his appointment to the Fed, he served as the President's Special Assistant for Economic Policy and Executive Secretary at the White House National Economic Council from 2002 to 2006.
Trump also recalled that Warsh began his career as a vice president and executive director in the mergers and acquisitions department at Morgan Stanley.
"HE COULD BE ONE OF THE BEST FED CHAIRS IN HISTORY"
Trump, who has known Kevin Warsh for many years, stated, "I have no doubt that Kevin will go down in Fed history as one of the greatest chairs, perhaps even the best."
Trump concluded his statement with the words, "Congratulations Kevin."
POWELL'S TERM EXPIRES IN MAY
The current Fed Chair Jerome Powell, whose term will end in May, has been the target of Trump's harsh criticisms for the past year. While Trump argues that interest rate cuts should be made more quickly, Powell emphasizes that a more cautious monetary policy should be followed, pointing out that inflation has remained high following the tariffs imposed by the Trump administration.
WHO IS KEVIN WARSH?
Kevin Warsh has become one of the prominent figures in American economic policy discussions once again. Especially during a period when steps to combat inflation and monetary tightening are shaping global markets, Warsh is remembered for both his role in the 2008 global financial crisis and his subsequent criticisms of loose monetary policies.
HIS ROLE DURING THE FINANCIAL CRISIS
Kevin Warsh served as a member of the Board of Governors of the U.S. Federal Reserve from 2006 to 2011. Appointed to this position by then U.S. President George W. Bush, Warsh was involved in the Fed's most critical decision-making processes during the 2008 global financial crisis.
Working closely with then Fed Chair Ben Bernanke, Warsh played a role in the emergency measures taken in response to the collapse of major financial institutions, the freezing of credit markets, and the increase in systemic risks. Bank rescue programs, emergency liquidity mechanisms, and the activation of extraordinary monetary tools were among the key topics of this period.
CRITICISM OF LOOSE MONETARY POLICIES
After leaving the Fed, Warsh stood out with his criticisms of long-term low interest rate policies and large-scale asset purchases (quantitative easing). According to Warsh, such policies can distort prices in financial markets, encourage excessive risk-taking, and increase inflationary pressures in the long run.
This approach has made him an important reference point for those advocating for tighter monetary policy and prioritizing price stability.
Warsh currently serves as a senior researcher at the Hoover Institution and conducts studies on monetary policy, financial regulation, and global economic risks at Stanford University. He also provides consulting services to various governments and financial institutions.
EXPECTATIONS FOR THE FUTURE
Due to his experience and policy views, Kevin Warsh is mentioned as a potential candidate for high-level economic positions such as U.S. Treasury Secretary or Fed Chair, especially during periods when Republicans are in power.
In a time when global central banks are grappling with inflation, slowing growth, and financial volatility, Kevin Warsh's views on the limits of monetary policy continue to have an impact in economic policy discussions.