- Home
- Politics
President Donald Trump announced Kevin Warsh as his selection for the next chair of the Federal Reserve, who will replace Jerome Powell.
By
David Dittman
published
30 January 2026
Contributions from
Alexandra Svokos
in News
When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works.
Share Share by:- Copy link
- X
After months of speculation — and years of criticizing his last pick — President Donald Trump announced his selection for the next chair of the Federal Reserve.
The president announced on Friday, January 30, that Kevin Warsh will be the next Fed chair. If approved by the Senate, he will take over when Jerome Powell's term ends in May 2026. Trump had been reviewing several candidates for some time now.
"I am pleased to announce that I am nominating Kevin Warsh to be the CHAIRMAN OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM," Trump wrote 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. On top of everything else, he is 'central casting,' and he will never let you down."
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
CLICK FOR FREE ISSUE
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Sign upIn December, the president said his nomination will be "someone who believes in lower interest rates by a lot."
So, who is Kevin Warsh, and how could he impact your life and your money?
What to know about Kevin Warsh
Kevin Warsh was Fed Chair Ben Bernanke's right-hand man during the 2008-09 global financial crisis and was his primary liaison to Wall Street, which earned him credibility he still retains.
Markets see Warsh as a source of stability should Trump continue to pressure the central bank. He served on the Federal Reserve Board from February 2006 through March 2011.
He was special assistant to the president for economic policy and executive secretary of the White House National Economic Council from 2002 through 2006, during the George W. Bush administration. From 1995 to 2002, Warsh worked for Morgan Stanley.
He's currently a visiting fellow in economics at Stanford University's Hoover Institution, a lecturer at the Stanford Graduate School of Business and a member of the Panel of Economic Advisers of the Congressional Budget Office.
Warsh is widely viewed as a "hawk" on monetary policy who generally favors higher interest rates rather than the risk of inflation.
At the same time, Warsh, who was said to be a candidate for Treasury secretary before Trump picked Scott Bessent, was on the short list because he has a great relationship with the president.
Warsh said in mid-2025 that "the independent operations in the conduct of monetary policy is essential," adding "that doesn't mean the Fed is independent in everything else it does."
Though he consistently took the hawkish line on inflation during his time inside the central bank, Warsh has more recently advocated for lower interest rates.
Powell's legacy
Current Fed Chair Powell's term comes to an end on May 15, 2026. He has served in this role since he was appointed by Trump in 2018 as the 16th chair of the Federal Reserve.
Powell navigated the economy through the economic trip-up of the COVID-19 pandemic and the inflationary period that followed.
Asked about his legacy in the December Fed meeting, Powell said: "My thought is that I really want to turn this job over to whoever replaces me with the economy in really good shape. That's what I want to do. I want inflation to be under control, coming back down to 2%, and I want the labor market to be strong. That's what I want. And all of my efforts are to get to that place. They have been all along. But, ultimately, that's what I want."
And in the January Fed meeting, Powell offered his successor some words of advice. In addition to staying out of politics, he reminded the next Fed chair that their accountability is to Congress and maintaining this accountability will keep them legitimate to the American people.He also said that the Fed staff is excellent.
Related Content
- When Is the Next Fed Meeting?
- What to Look Out for in Economic Data This Week
- What's Next for the Fed — as an Institution?
- How Worried Should Investors Be About a Jerome Powell Investigation?
David DittmanInvesting EditorDavid Dittman is the former managing editor and chief investment strategist of Utility Forecaster, which was named one of "10 investment newsletters to read besides Buffett's" in 2015. A graduate of the University of California, San Diego, and the Villanova University School of Law, and a former stockbroker, David has been working in financial media for more than 20 years.
With contributions from Latest-
Ask the Tax Editor: Taxation of Social Security Benefits
Ask the Editor In this week's Ask the Editor Q&A, Joy Taylor answers questions on the taxation of Social Security benefits
-
The U.S. Economy Will Gain Steam This Year
The Kiplinger Letter The Letter editors review the projected pace of the economy for 2026. Bigger tax refunds and resilient consumers will keep the economy humming in 2026.
-
If You'd Put $1,000 Into AMD Stock 20 Years Ago, Here's What You'd Have Today
Advanced Micro Devices stock is soaring thanks to AI, but as a buy-and-hold bet, it's been a market laggard.
-
If You'd Put $1,000 Into AMD Stock 20 Years Ago, Here's What You'd Have Today
Advanced Micro Devices stock is soaring thanks to AI, but as a buy-and-hold bet, it's been a market laggard.
-
6 Key Ways to Plan for Financial Success in 2026 (and Avoid a Portfolio 'Death Spiral')
Use last year's tax data to help guide you as you consider this year's taxes, asset allocation and sources of the regular income you'll need in retirement.
-
A Financial Plan Is a Living Document: Is Yours Still Breathing?
If you've made a financial plan, congratulations, but have you reviewed it recently? Here are six reasons why your plan needs regular TLC.
-
Nasdaq Drops 172 Points on MSFT AI Spend: Stock Market Today
Microsoft, Meta Platforms and a mid-cap energy stock have a lot to say about the state of the AI revolution today.
-
Your Guide to Financial Stability as a Military Spouse, Courtesy of a Financial Planner
These practical resources and benefits can help military spouses with managing a budget, tax and retirement planning, as well as supporting their own career
-
3 Steps to Keep Your Digital Data Safe, Courtesy of a Financial Planner
As data breaches and cyberattacks increase, it's vital to maintain good data hygiene and reduce your personal information footprint. Find out how.
-
Here's Why You Can Afford to Ignore College Sticker Prices
College tuition fees can seem prohibitive, but don't let advertised prices stop you from applying. Instead, focus on net costs after grants and scholarships.
-
S&P 500 Tops 7,000, Fed Pauses Rate Cuts: Stock Market Today
Investors, traders and speculators will probably have to wait until after Jerome Powell steps down for the next Fed rate cut.
