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Trump’s Fed Pick Kevin Warsh Could Shock Markets with 100 Bps in Rate Cuts This Year, Economist Says
Trump's pick, favored by Wall Street, raises questions about Fed independence amid a DOJ probe of current chair Jerome Powell, with economists expressing mixed views.
- On February 1, 2026, President Donald Trump nominated Kevin Warsh to lead the Federal Reserve, with reactions pouring in within minutes of the announcement.
- Kevin Warsh, former Fed governor , is well-connected on Wall Street and began calling for lower rates after Trump's 2024 return.
- Among investors and economists, responses ranged from congratulations to demands for scrutiny as Mohamed El-Erian praised Warsh's expertise, while Paul Krugman criticized the nomination and Jason Furman urged Senate questions.
- Warsh may seek to shrink the Fed's $6.6 trillion balance sheet, but his influence is constrained by the FOMC's 12-voter structure, while Sen. Thomas Tillis said he will block confirmation until the Powell probe is resolved.
- Historians recall Arthur Burns's era under Nixon as a warning, as Burns engineered a 10% expansion of the money supply— the crucial question is whether Warsh can avoid becoming Burns and preserve Fed independence.
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Donald Trump has nominated Kevin Warsh as Chairman of the Federal Reserve (Fed), a monetary policy geared to the development of inflation. Nevertheless, Trump combines the hope of early interest rate cuts with personality. Will Warsh give in to the President's demands?
Can Fed chair nominee Kevin Warsh avoid becoming Arthur Burns?
In the end, the US president chose the man many on Wall Street favored to chair the Federal Reserve Board. Kevin Warsh, who served as a Fed governor from 2006 to 2011, is well-connected on Wall Street and in international banking circles. Warsh put those connections to good use during the 2008 financial crisis when […] The post Can Fed chair nominee Kevin Warsh avoid becoming Arthur Burns? appeared first on Asia Times.
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Coverage Details
Total News Sources25
Leaning Left2Leaning Right5Center2Last UpdatedBias Distribution56% Right
Bias Distribution
- 56% of the sources lean Right
56% Right
L 22%
C 22%
R 56%
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