Who is Kevin Warsh? Know all about Trump’s pick to replace Jerome Powell as US Fed chair

Kevin Warsh

Donald Trump nominated Kevin Warsh, former Fed governor and Wall Street banker, as the next US central bank chief. Warsh’s odds surged in betting markets, and analysts say his market-friendly stance could stabilize the dollar. He previously served under Bush.

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US President Donald Trump nominated Kevin Warsh, a former Federal Reserve governor, on Friday to be the next US central bank chief.

"I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best," Trump wrote on his Truth Social platform.

"On top of everything else, he is 'central casting,' and he will never let you down."

Betting markets swing sharply in Warsh's favour

Prediction markets have moved decisively toward Warsh in recent days. On Polymarket, his chances of securing the nomination jumped to 93%, up from 32% earlier in the week, when BlackRock fixed-income chief Rick Rieder briefly emerged as the leading contender.

Background as former Fed governor and Wall Street banker

Warsh served on the Federal Reserve's Board of Governors from 2006 to 2011 after being appointed by President George W. Bush, becoming the youngest Fed governor in US history. Prior to that, he worked in the mergers and acquisitions division at Morgan Stanley and later held the role of executive secretary at the White House National Economic Council.

Current academic and advisory roles

He is currently a Shepard Family Distinguished Visiting Fellow in Economics at Stanford University's Hoover Institution and a visiting scholar at Stanford Graduate School of Business. Warsh also advises multiple public and private companies, serves on the board of United Parcel Service, and is a member of the Group of Thirty.

Market reaction and dollar implications

Analysts at ING say Warsh's potential nomination could help stabilise the US dollar, which has been awaiting a catalyst for recovery. Seen as one of the more market-friendly candidates, Warsh is known for his hawkish views, particularly on balance sheet reduction, though he is believed to have struck a more dovish tone during the interview process.

Links to Trump administration and key policymakers

Warsh has longstanding ties to Donald Trump and close connections within Wall Street and Washington. He works closely with billionaire investor Stanley Druckenmiller, who is connected to Treasury Secretary Scott Bessent, reportedly involved in the Fed chair search.

Shortlist narrows as Warsh emerges frontrunner

According to Bloomberg, four candidates were seriously considered for the role: Fed Governor Christopher Waller, National Economic Council Director Kevin Hassett, BlackRock executive Rick Rieder and Kevin Warsh. Sources cited by Bloomberg said Warsh visited the White House on January 28, though no official confirmation has been provided.

A familiar name in Fed chair selections

Warsh was also among the final contenders in 2017, when Trump ultimately selected Jerome Powell. His return to the shortlist this year makes him the only candidate to feature prominently in two separate Fed chair selection processes under Trump.