Kevin Warsh has been nominated by President Donald Trump to succeed Jerome Powell as the chairman of the Federal Reserve, pending confirmation by the Senate. This announcement was made during the International Monetary Fund (IMF) and World Bank Spring meetings in Washington, D.C., on April 25, 2025. Warsh’s nomination was formally transmitted to the Senate on Wednesday, over a month after Trump first indicated his intention to select Warsh for the position.
Senator Thom Tillis, a Republican from North Carolina, has expressed his intention to block Warsh's nomination until a federal criminal investigation involving Powell is resolved. Powell is reportedly under investigation by the U.S. attorney’s office concerning the renovation of the Federal Reserve's headquarters and his related testimony before the Senate. He has indicated that the investigation may be linked to his and other governors' refusal to comply with Trump’s requests for more aggressive interest rate cuts.
The political landscape surrounding Warsh's nomination is complicated by previous tensions between Trump and the Federal Reserve, particularly with regard to interest rate policies. Last summer, Trump attempted to dismiss Fed Governor Lisa Cook, who supported Powell's decisions on interest rates, citing an unproven allegation of mortgage fraud against her. Cook remains on the Federal Reserve Board amid ongoing legal challenges to her potential removal. The Supreme Court has heard arguments concerning Trump’s authority to fire Cook, but a ruling has yet to be issued.
As Warsh awaits Senate confirmation, the implications of these investigations and political maneuvers continue to unfold, potentially affecting the future direction of U.S. monetary policy.