Trump's Fed Chair Pick Kevin Warsh Is the 'Right Choice,' Says IBM's Gary Cohn - Elizabeth Warren Warns President Is Installing 'Puppets'

Over the weekend, IBM (NYSE:IBM) vice chair Gary Cohn praised President Donald Trump's decision to nominate Kevin Warsh as the next Fed chair. However, Sen. Elizabeth Warren (D-Mass.) warned that the move threatens the central bank's independence.

Gary Cohn Calls Warsh Highly Qualified And A Market-Friendly Pick

On Sunday, speaking on CBS News' Face the Nation, Cohn described Warsh as a "traditionalist" with deep institutional experience, pointing to his role at the Fed during the 2008 financial crisis.

Cohn said markets reacted favorably to the nomination, noting a stronger U.S. dollar and declines in gold and silver prices, which he described as signs of investor confidence.

He added that Warsh, who served on the Fed’s Board of Governors from 2006 to 2011, is likely to support one to two interest-rate cuts this year.

“I think he is actually the completely right choice in this period of time,” he stated.

Last week, IBM reported fourth-quarter revenue of $19.69 billion, topping the Street's $19.23 billion consensus forecast, according to data from Benzinga Pro.

Markets Brace For A Smaller Fed And Inflation-First Focus

Trump formally nominated Warsh on Friday to succeed Jerome Powell when Powell's term ends in May 2026. The President praised Warsh's independence and credibility, saying he expects him to be "one of the great Fed chairmen."

Some economists say Warsh's framework leans more heavily toward inflation control.

Neil Dutta of Renaissance Macro Research said that Warsh places greater emphasis on controlling inflation. Others, including Pathstone's Michael McGowan, said Warsh would likely push for a smaller Fed footprint and reduced liquidity.

Elizabeth Warren Warns Of Political Influence At The Fed

Sen. Warren criticized the nomination, accusing Trump of trying to exert political control over the central bank.

"Donald Trump is trying to take over our nation’s central bank by installing his puppets on its board," Warren said in a video posted on X, arguing that Warsh would prioritize Wall Street over American families.

She urged the Senate to block the nomination unless Trump stops what she called efforts to pressure current Fed leadership, framing the confirmation fight as a test of the Fed's independence.

Praise From Saylor And Dalio, Criticism From Ex-Fed Economist

Strategy Inc. (NASDAQ:MSTR) founder Michael Saylor also took to X, saying, "Soon, Kevin Warsh will be the first pro-Bitcoin Chairman of the Federal Reserve."

Claudia Sahm, a former economist at the Federal Reserve, said on X that she has concerns about Warsh potentially leading the Federal Reserve.

In her Substack article, she said, "He's long on criticisms and short on solutions, which is troubling for someone who served as a Fed official during the largest financial and economic crisis since the Great Depression."

Ray Dalio, the founder of Bridgewater Associates, took to X and praised Warsh, saying, "He is knowledgeable and a reasonable man who understands the risks of having a Fed policy that is too easy as well as too tight."

IBM shows a solid price trend across the short, medium and long-term time frames, though it carries a weak value score, according to Benzinga's Edge Stock Rankings.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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