President Donald Trump on Friday named Kevin Warsh as the nominee to succeed Federal Reserve chair Jerome Powell. The announcement comes after a months-long dispute between Trump and Powell over rate cuts, which escalated when the Department of Justice launched criminal investigations into the Federal reserve chair.
Trump praised Warsh on Truth Social, writing that he had “no doubt” his pick would be remembered as “one of the GREAT Fed Chairmen, maybe the best,” adding that he was “central casting” and “will never let you down.”
Warsh, a former Fed governor, played a central role in the Bush-era response to the 2008 financial crisis, working closely with then-Chairman Ben Bernanke.
Warsh is not viewed as a sure vote for rate cuts. He criticized the Fed’s September 2024 reduction, though he has recently expressed greater openness to cuts.
The dollar strengthened while gold and silver sold off, as traders interpreted Warsh’s nomination as reducing the risk of aggressive rate cuts and political interference with the Fed.
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