President Donald Trump nominated Kevin Warsh on Friday to serve as the next Chair of the Federal Reserve, set to succeed Jerome Powell when his term expires in May 2026.
Who Is Kevin Warsh?
Kevin Warsh is a former Federal Reserve governor, financier and lawyer with long-standing ties to Washington and Wall Street.
He served on the Fed's Board of Governors from 2006 to 2011 and, at 35, ranked among the youngest governors in modern central bank history.
Born April 13, 1970, in Albany, New York, Warsh earned a bachelor's degree in public policy from Stanford University and a Juris Doctor from Harvard Law School, with additional coursework at the Massachusetts Institute of Technology.
During the 2008 financial crisis, he acted as the Federal Reserve's main liaison to Wall Street and represented the central bank at meetings of the Group of 20 major economies.
Before joining the Fed, Warsh worked in the White House as special assistant to the president for economic policy and executive secretary of the National Economic Council during the administration of George W. Bush.
Warsh Policy Stance: Less Accommodation Expected?
Warsh, 55, brings deep experience in monetary policy and financial markets, alongside a reputation for skepticism toward prolonged ultra-easy central bank policies.
Wall Street views that record as a signal the Fed could be less inclined to sharply reduce interest rates, easing recent concerns about political pressure undermining central bank independence.
Warsh appointment pushed back earlier fears that a Trump-appointed Fed chair would be more willing to push through rapid rate cuts.
Market Reaction: Dollar Strength, Metals Selloff
Markets had begun anticipating the nomination Thursday, and those anticipatory moves intensified Friday after Trump's announcement.
The U.S. dollar strengthened 0.4% as traders positioned for less accomodative monetary policy under Warsh, a dynamic that often pressures commodities priced in dollars.
Gold, tracked by SPDR Gold Shares (NYSE:GLD), traded roughly 4.6% lower to $5,130 per ounce on Friday morning, marking its steepest one‑day drop since mid‑October.
Silver suffered even heavier losses, plunging about 11% to $103, eyeing its worst session since August 2020.
The S&P 500 – tracked by the Vanguard S&P 500 (NYSE:VOO) – traded 0.3% lower during the premarket trading.
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