Trump Names Kevin Warsh as New Federal Reserve Chair Nominee
President Donald Trump has publicly named Kevin Warsh as his nominee for the Federal Reserve Chair position, succeeding Jerome Powell. Warsh previously served on the Federal Reserve Board of Governors from 2006 to 2011.
Announcement Details
The announcement was made via Trump’s Truth Social platform, where he expressed confidence in Warsh’s capabilities. Trump stated, “I have no doubt that Warsh will go down as one of the GREAT Fed Chairmen, maybe the best.”
During a recent event, Trump hinted at Warsh being a strong candidate for the position, referencing that many believed Warsh could have been nominated years earlier.
Market Reactions
Betting markets have shown a significant shift in favor of Warsh since Trump’s remarks. Initially, Kevin Hassett was considered the frontrunner, holding an 84% chance as recently as December. However, this confidence has dwindled to just 1%.
Current Betting Odds
| Candidate | Odds (%) |
|---|---|
| Kevin Warsh | 94-95 |
| Rick Rieder | 50 |
| Kevin Hassett | 1 |
Trading volumes have also been substantial, with over $307 million wagered on Polymarket and $90 million on Kalshi regarding the Federal Reserve Chair position.
Senate Confirmation Hurdles
Trump’s nomination must receive Senate approval, but challenges may arise. Senator Thom Tillis from North Carolina has stated he will oppose any Fed nominations until the Department of Justice completes its investigation into Powell regarding allegations related to a $2.5 billion renovation of the Federal Reserve’s headquarters.
Tillis emphasized that no nominations would proceed until the matter is resolved, creating additional uncertainty around Warsh’s potential confirmation.
Background Context
Jerome Powell has consistently been a target of Trump’s criticism during his presidency, particularly regarding the monetary policies of the Federal Reserve. The ongoing investigation into Powell’s conduct adds another layer of complexity to this nomination process. As the situation develops, the focus will be on both Warsh’s confirmation and Powell’s future with the Federal Reserve.
