Meet your new Fed chair

After months of suspense and countless Polymarket predictions, President Trump has finally nominated the next chair of the Federal Reserve: Kevin Warsh. If confirmed by the Senate, the 55-year-old will take the hot seat after Jerome Powell vacates mid-May.

Trump was all compliments on his pick, posting on Truth Social, “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.”

Warsh’s hawkish, tough-on-inflation track record gave investors pause today, while giving the poor US dollar a lift. As for what’s next, that will depend on if Warsh can maintain the Fed’s independence amid Trump’s relentless pressure campaign for lower rates.

Here’s more info about Warsh that will help you place your next round of wagers on Wall Street and beyond.

Who is this guy?

Warsh grew up in upstate New York, studied at Stanford, then Harvard Law, and worked as a banker at Morgan Stanley. In 2006 at the wee age of 35, he became the youngest Fed governor in history. He was a contender for Fed chair back in 2017, but Trump decided he looked too fresh-faced for the job.

What does he stand for?

On paper, at least, Warsh has been a staunch advocate of keeping inflation in check—and politics out of the picture. He even penned a speech titled “An Ode to Independence” back in 2010, in which he opined, “Any attempt to influence inappropriately the conduct of Fed policy would yield a strong and forceful rebuke.”

Lately, though, Warsh has warmed up to Trump’s talking points, embracing rate cuts and waving off worries that tariffs will inflate prices. Plus, throughout his career, Warsh has taken pot shots at the central bank, particularly its $6.6 trillion “bloated balance sheet” that he recently vowed to put on a crash diet.

What does this mean for the Fed?

Just because we’ve got a nominee doesn’t mean the drama is over. After a criminal investigation was launched against Powell over the Fed’s headquarter renovations, even Trump’s own party is crying foul. North Carolina’s Republican Senator Thom Tillis said he would block any of Trump’s Fed picks until Powell’s subpoena is resolved.

Although JPow, at 72, is likely eager to retire from his role as Trump’s favorite punching bag, speculation is swirling that he might stick around—his chairmanship ends this year, but he can remain a Fed governor until 2028—purely to avoid any hint that he’s bolting in hopes that the probe vanishes with him.

The upshot of all this is that we can all stay tuned for plenty more Fed intrigue in the coming months.—JD