WASHINGTON (EFE).— El US President Donald Trumpannounced this Friday the nomination of banker and economist Kevin Warsh how next Chairman of the Board of Governors of the Federal Reserve (Fed), in replacement of Jerome Powell.
The announcement was made by the president through the social network Truth Social, where he stood out Warsh’s career and stated that “he has the perfect profile” to lead the US central bank, which he predicted a new period under his leadership.
Trump stressed that In 2006, at age 35, Warsh became the youngest governor in the history of the Federal Reserve System. a position he held until 2011, during a period marked by financial tensions and global economic challenges.
The president assured that he has known Warsh for years and expressed full confidence in his performance. “I have no doubt that he will go down in history as one of the great presidents of the Fed, perhaps the best,” the president wrote in his message.
Kevin Warsh, 55, has had a career linked to both the financial sector and the public sphere. He was an economic advisor to former President George W. Bush and is currently affiliated with the Hoover Institution, a conservative think tank based in California.
The economist had already been considered by Trump during his first term to head the Fed; however, In 2017, the then president chose to nominate Jerome Powell, who took office in February 2018.
If confirmed by the Senate, Warsh will join the Federal Reserve in a context of questions about its independenceafter Since his return to the White House, in January 2025, Trump has insisted on accelerating and deepening the reduction in interest rates.
The president has reiterated his criticism of Powell, whom he has accused of being slow to lower rates, and has promoted changes within the Federal Open Market Committee (FOMC)body in charge of the country’s monetary policy.
Last September, Trump placed Stephen Miran on the FOMC board and his administration began a process to force the departure of Lisa Cook, moves that have been interpreted as attempts to directly influence the central bank’s decisions.
Warsh has historically been a proponent of caution in the face of inflation, which currently remains above the Fed’s 2% target, although over the past year he has been more open to supporting lower interest rates.
In statements from the Oval Office, Trump stated that Warsh “definitely wants to reduce interest rates,” although he clarified that he has not asked for specific commitments because he considered it inappropriate to intervene directly.
For its part, the American Bankers Association (ABA) congratulated Warsh on his nomination and highlighted his “deep knowledge of monetary policy, markets and the fundamental role of banks in the economy,” while expressing his expectation for an orderly transition in Fed leadership.
Who is Kevin Warsh?
He was governor of the Federal Reserve between 2006 and 2011participating in key decisions during the global financial crisis, focusing on monetary stability, banking regulation and risk analysis.
He has training at Harvard and Stanfordand has developed a career linked to macroeconomic economics, financial markets and public policies, contributing through research, teaching and publications in prestigious institutions and economic forums.
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