Key Takeaways
- President Trump will nominate Kevin Warsh, a former Fed governor, to be the next chair of the US Federal Reserve.
- Warsh has advocated for lower interest rates and a smaller balance sheet at the Fed.
- Analysts expect markets to view Warsh as a credible choice and do not expect issues with his Senate confirmation.
With his choice of Kevin Warsh to lead the US Federal Reserve, analysts say President Donald Trump has an experienced official to steer monetary policy. But they will watch closely for any signs of Warsh bowing to pressure from Trump to lower interest rates more than needed.
After months of intense speculation, on Friday, Trump announced his intention to nominate Warsh, a former Fed governor, to replace Jerome Powell as chair. Warsh has advocated for lower interest rates and reform, saying the bank is suffering from “mission creep.” Analysts think that could mean…
