Trump Set to Announce Kevin Warsh as Fed Chair Today
President Donald Trump is expected to announce the nomination of Kevin Warsh as the new chair of the Federal Reserve, effectively replacing Jerome Powell. This decision is anticipated to be revealed during a press conference on Friday morning.
Key Facts About Kevin Warsh’s Nomination
Multiple news outlets, including The Wall Street Journal, New York Times, and Bloomberg, have confirmed Trump’s intentions. Warsh was one of the four leading candidates for the position, but no decisions are final until Trump’s official announcement.
- Kevin Warsh: Former member of the Federal Reserve Board from 2006 to 2011.
- Status: Warsh was considered a contender for the chair position eight years ago when Trump previously selected Powell.
- Announcement Timing: Trump confirmed he would declare his choice on Friday morning at a media event.
Market Reactions to the Nomination
Betting markets have shown fluctuating support for various candidates. Initially, National Economic Council Director Kevin Hassett was favored to succeed Powell, with a peak probability of 84% in December. However, those odds have drastically changed in recent weeks.
- Odds Shifting: Hassett’s current chance stands at just 1% after Warsh emerged as the frontrunner.
- Current Predictions: Warsh is now viewed as having a 94-95% likelihood of receiving the nomination.
- Betting Volume: Over $307 million has been wagered on Polymarket regarding the Federal Reserve chair position.
Background Context
Jerome Powell has faced significant criticism from Trump during the president’s second term, particularly regarding monetary policy decisions. An investigation was recently launched by the Department of Justice into Powell for alleged misleading statements about a $2.5 billion renovation of the Federal Reserve’s headquarters, claims which Powell has denied.
The possibility of Warsh’s nomination has brought to the forefront discussions about the future of the Federal Reserve’s leadership as the economic landscape continues to evolve.
