Trump nominates Kevin Warsh as next Fed chair, replacing Jerome Powell

US President Donald Trump on Friday selected former Federal Reserve Governor Kevin Warsh to lead the central bank when Jerome Powell’s term ends in May.

"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. Kevin currently serves as the Shepard Family Distinguished Visiting Fellow in Economics at the Hoover Institution, and Lecturer at the Stanford Graduate School of Business," said Trump in a post on Truth Social.

The president's selection ends a race that had narrowed to four contenders -- Warsh; current Fed governor Christopher Waller; Rick Rieder of BlackRock; and Trump's top economic adviser Kevin Hassett.


But Warsh, if confirmed by the US Senate, will take the helm at a time when the Trump administration has sharply escalated pressure on the central bank.

Trump's moves have sparked worries about risks to the Fed's independence from politics, which experts warn could have ramifications for the world's biggest economy.

Warsh, who is from New York, has recently stepped up his criticism of the Fed, endorsing many of the policy positions of Trump and his administration.

He used to be a mergers and acquisitions banker at Morgan Stanley.

In Trump's first term, he considered Warsh for the Fed Chair position -- replacing Janet Yellen -- but eventually chose Powell.

As Trump continues to call for lower interest rates to boost the economy, all eyes will be on how Warsh defends the bank's independence in the face of politics.

Already, Trump has sought to fire Fed Governor Lisa Cook over claims of mortgage fraud, sparking a legal battle likely to prove crucial in determining how much discretion the president has when it comes to removing key central bank officials.

The Trump administration has also launched an investigation into Powell over renovations at the Fed's headquarters, in a probe that Powell has slammed as a threat to the bank's independence.