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Kevin Wash, President Trumpchoice to lead Fedis a “hard money hawk” who has previously called for “regime change” at the Fed.
Trump officially announced Warsh, 55, as his pick Friday morning in a Truth Social post in which he laid out the former Morgan Stanley executive’s extensive resume.
“I have known Kevin for a long time and there is no doubt that he will go down as one of the greatest Fed chairs, perhaps the best. Most importantly, he is ‘the heart of the matter’ who will never let you down,” the president wrote.
Warsh has impressive Republican finance credentials. Some question whether he fully supports the MAGA agenda. His recent statements suggest he will support the president.
Crucially for Trump, he agrees that the Fed should be more aggressive in cutting interest rates. The president has long opposed Current Federal Reserve Chairman Jerome Powelland again lashed out at the veteran economist on Thursday, Called Powell an “idiot” After the Fed “again refused to cut interest rates.”
trump wants one Federal Reserve Board of Governors Who is more open to the direction of the White House, i.e. Causing panic in CongressWarsh has been open to the idea of lowering interest rates since the Fed is supposed to operate independently.
“I think their hesitancy to cut rates is actually … quite detrimental to them,” Warsh said of the Fed board. Interviewed by CNBC SQuack box Last July, he added that the president “is right to publicly push the Fed.”
Warsh served on the Fed’s Board of Governors from 2006 to 2011; he was 35 when President George W. Bush named him the youngest nominee ever.
This financial prodigy has This comes down to his upstate New York upbringing Teach him the many things he needs[ed] Understand the real economy. ” He attended Stanford, Harvard and MIT and quickly rose through the ranks after joining Morgan Stanley in New York City, eventually becoming an executive director.
After leaving Morgan Stanley in 2002, Warsh served as Special Assistant to the President for Economic Policy and Executive Secretary of the National Economic Council, advising President Bush and senior administration officials on economic issues such as domestic finance and consumer protection.
He also serves on the President’s Working Group on Financial Markets.
Warsh’s Fed appointment in 2006 faced some opposition, mostly because of his age, but Ben Bernanke, then a Fed governor, later described how Warsh proved his critics wrong.
“He received some criticism in his youth, including from former Vice Chairman Preston Martin, but Kevin’s political and market savvy and many connections on Wall Street would prove invaluable,” Bernanke wrote in his 2015 memoir.
Warsh played a key role in helping deal with the 2008 financial crisis, including negotiating a deal to rescue his former employer, Morgan Stanley, Avoid collapse.
He is not afraid to take controversial positions, arguing in 2009 that the Fed should take a more hands-off approach to helping the economy recover, and in November 2010 expressing strong skepticism about the Fed’s proposal to stimulate employment and economic growth by lowering interest rates.
MAGA hawks worry his past actions are inconsistent with Trump’s tariff agenda; in a 2011 Column Wall Street Journal, He called on policymakers to “resist the rising tide of economic protectionism” and publicly defend globalization and free trade.
However, by 2024, he took a tougher linerecommending a tougher approach to countries that are detrimental to U.S. interests.
Warsh is well familiar with Trump’s approach and participated in a business forum hosted by the then-president-elect in 2016 to provide economic policy and strategic advice. Most recently, he has served on several corporate boards and is a scholar and lecturer at Stanford University’s Graduate School of Business.
Perhaps most importantly, he has a personal relationship with the president: Warsh is married to billionaire granddaughter and Estée Lauder heiress Jane Lauder, and his father-in-law, Ronald Lauder, is a long-time friend of Donald Trump.
Warsh will face a bumpy road to confirmation in the Senate; after the president’s announcement, Republican Sen. Thom Tillis confirmed he would block Trump’s nominee in response to Justice Department requests The investigation into Jerome Powell.
‘My position has not changed,’ Tillis wrote in a post on social media site. “I will oppose the confirmation of any Fed nominee, including for the chairmanship, until the Department of Justice’s investigation into Chairman Powell is fully and transparently resolved.”
Tillis acknowledged Warsh as “a qualified nominee with a deep understanding of monetary policy” but said protecting the Fed’s independence from political interference or legal intimidation was “non-negotiable.”
The senator is a member of the influential Senate Banking Committee, which needs to approve Warsh’s nomination before it goes to a full Senate vote.