Trump taps ex-Fed insider Warsh to lead world's top central bank

President Donald Trump chose Kevin Warsh, a former Federal Reserve governor, to be the next chair of the U.S. central bank. The selection ended months of speculation about who would take over from Jerome Powell and immediately signaled a more hawkish direction for monetary policy.

Warsh is widely seen as more willing than Powell to challenge the Fed’s recent approach, especially on interest rates and inflation. That matters because the Fed chair can shape expectations in financial markets as much as policy itself.

The announcement also reflected Trump’s desire for a central bank leader more aligned with his economic agenda. Investors initially treated the choice as a sign that rate cuts would not come quickly or aggressively.

This nomination set up an important confirmation fight and raised questions about how much independence the next Fed chair would have under a president who has repeatedly criticized the central bank.

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