Trump expected to nominate former Fed governor Kevin Warsh as chair

President Donald Trump is expected to nominate former Federal Reserve Governor Kevin Warsh to lead the US central bank, according to reports from Bloomberg and The New York Times. The decision, anticipated to be announced on Friday, would position Warsh to succeed current Chair Jerome Powell, whose term concludes in May, following a protracted selection process.

Warsh's Profile and Alignment with Trump's Views

Kevin Warsh, 55, served on the Federal Reserve Board from 2006 to 2011 and has advised President Trump on economic strategy. Although historically viewed as an inflation hawk, Warsh has recently aligned with the president's public calls for significantly lower interest rates. Trump has repeatedly stated the US should have "the lowest interest rate in the world," advocating for rates around 1%, far below the current 3.5% to 3.75% target range.

Potential Senate Confirmation Hurdles

While some Republican senators, like Bill Hagerty, view Warsh favorably as a market-acceptable choice, his confirmation path faces an immediate obstacle. Senator Thom Tillis, a Republican member of the Banking Committee, has vowed to block all of Trump's Fed nominations until the Justice Department completes an investigation into the Fed's headquarters renovation, which involves Chair Powell's congressional testimony. Senate Majority Leader John Thune has cast doubt on confirming any nominee without Tillis lifting his hold.

Implications for Global Monetary Policy

The potential appointment of Warsh is closely watched by global financial markets. A shift toward a more dovish Fed leadership could influence international capital flows, currency valuations, and borrowing costs worldwide. For emerging economies like Türkiye, which navigate complex interactions with US monetary policy, the choice of the next Fed chair carries significant implications for economic stability and financial planning.