Breaking News! Trump nominates Kevin Wash to take over the U.S. Federal Reserve, with the probability of a Fed rate cut in June rising to nearly 50%

President Trump officially nominates Kevin Warsh to succeed Jerome Powell as Federal Reserve Chair, ending months of speculation and once again drawing widespread attention to the future direction of U.S. monetary policy.
(Background recap: Breaking News> Trump to announce Fed’s new chair tonight: The Fed should cut interest rates by another 2-3%, who do market forecasts favor?)
(Additional background: Powell’s press conference signals a “cautious hawkish” stance: the economy is stable, inflation slightly high, and there is no rush to cut rates at present.)

Table of Contents

• End of personnel speculation, signaling clear political intent
• Trump’s strong endorsement, emphasizing ability and loyalty
• Market expectations slightly adjusted, rate cut pace still highly data-dependent
• Senate review imminent, Fed independence becomes a focus

On January 30, 2026, President Trump officially announced the nomination of Kevin Warsh to serve as the next Federal Reserve Chair, replacing current Chair Jerome Powell. Powell’s term will end in May 2026. This personnel decision not only concludes months of market speculation but also reignites public focus on the future direction of U.S. monetary policy.

End of personnel speculation, signaling clear political intent

Trump’s “return” to select Warsh is seen as a clear response to Powell’s monetary policy stance during his tenure. As early as his first term in 2017, Trump considered appointing Warsh as Fed Chair but ultimately chose Powell. Over the years, Trump publicly criticized Powell for being too slow in cutting rates, believing the Fed had not sufficiently aligned with White House economic stimulus and growth goals.

White House sources indicate that the nomination process involved multiple rounds of screening, with candidates including Kevin Hassett, then-head of the White House National Economic Council; current Fed Board member Christopher Waller; and senior executives from BlackRock, among others. Ultimately, Warsh stood out.

Trump’s strong endorsement, emphasizing ability and loyalty

Trump publicly stated on his social platform Truth Social that he has known Warsh for many years, has no doubt about his capabilities, and praised him as potentially “one of the greatest Chairs in Fed history.” Trump wrote:

I am pleased to announce that I have officially nominated Kevin Warsh to serve as Federal Reserve Chair.

Kevin currently serves as the Shepard Family Distinguished Visiting Fellow at Stanford University’s Hoover Institution and is also a lecturer at Stanford Graduate School of Business. He is a partner at Stanley Druckenmiller’s Duquesne Family Office LLC.

Kevin graduated from Stanford University with an A.B. degree and earned his J.D. from Harvard University. He has conducted extensive research in economics and finance, including submitting an independent report to the Bank of England proposing reforms to the UK’s monetary policy operations, which was later adopted by the UK Parliament.

At age 35, Kevin became the youngest-ever Fed Governor, serving from 2006 to 2011, representing the Fed at G20 meetings and acting as a special envoy to emerging and developed economies in Asia. He also served as an executive director overseeing operations, personnel, and financial performance of the Board.

Before joining the Board, Kevin was a special assistant for economic policy to the President and served as Executive Secretary of the White House National Economic Council from 2002 to 2006. Earlier, he worked in M&A at Morgan Stanley & Co. as Vice President and Managing Director.

I have known Kevin for a long time and have no doubt he will become one of the greatest Chairs in Fed history, possibly the most outstanding. Besides, he is the “best candidate” in every respect and will not disappoint everyone.

Congratulations, Kevin!

Market expectations slightly adjusted, rate cut pace still highly data-dependent

Following Warsh’s nomination, market expectations for monetary policy shifted slightly. According to the CME FedWatch tool, traders’ probability of a rate cut at the June 2026 FOMC meeting has approached 50%, up from before Warsh’s nomination.

Senate review imminent, Fed independence becomes a focus

It is worth noting that Warsh’s nomination still requires confirmation by the U.S. Senate. With Republicans controlling the Senate, the approval probability is considered relatively high, but hearings are expected to focus on the Fed’s independence and whether it will face increased policy pressure from the White House in the future.