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Trump throws more support behind Kevin Warsh for Fed chair
| USA | general

Trump throws more support behind Kevin Warsh for Fed chair

#Donald Trump #Kevin Warsh #Federal Reserve #Jerome Powell #Interest Rates #Central Bank #Economic Policy

📌 Key Takeaways

  • Donald Trump expressed public regret for not choosing Kevin Warsh to lead the Federal Reserve during his first administration.
  • Warsh is now considered a leading candidate to replace current Fed Chair Jerome Powell.
  • The move indicates a desire for a Federal Reserve leader more in sync with Trump's economic and interest rate preferences.
  • Analysts view this potential appointment as a significant shift toward a more growth-oriented and less independent central bank.

📖 Full Retelling

President-elect Donald Trump told reporters and advisors in Palm Beach this week that he regrets his 2017 decision not to appoint Kevin Warsh as Chair of the Federal Reserve, a move he described as a "mistake" as he considers leadership changes for his upcoming second term. Speaking ahead of his return to the White House, Trump signaled that Warsh, a former member of the Federal Reserve Board of Governors, is now a top contender to succeed current Chair Jerome Powell. The public admission of regret serves as a clear indication of Trump’s intent to pivot the nation's central bank toward a leader more aligned with his economic vision of deregulation and lower interest rates. Kevin Warsh, who served on the Fed Board from 2006 to 2011, has long been a favorite among fiscal conservatives for his skepticism regarding long-term quantitative easing and his advocacy for a more transparent monetary policy. During Trump's first term, the President eventually chose Jerome Powell for the role, a decision that led to a famously contentious relationship as Trump frequently criticized Powell for raising interest rates. By revisiting Warsh as a potential candidate, Trump is positioning a loyalist with deep institutional knowledge to potentially overhaul the Fed’s current trajectory. Industry analysts, including Kristin Myers, ETF Editor-in-Chief for AssetTV, suggest that Trump's renewed focus on Warsh is a strategic signal to Wall Street regarding the administration’s future economic priorities. If nominated and confirmed, Warsh would be expected to prioritize economic growth and potentially challenge the traditional independence of the Fed to better suit the executive branch's policy goals. This shift comes at a critical time as the central bank continues to navigate the complexities of post-inflation stabilization and a shifting global trade landscape.

🏷️ Themes

Economy, Politics, Monetary Policy

📚 Related People & Topics

Kevin Warsh

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American lawyer (born 1970)

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Jerome Powell

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American central banker (born 1953)

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Federal Reserve

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📄 Original Source Content
President Trump said that he "made a mistake" by not nominating Kevin Warsh for Federal Reserve chair during his first term. Kristin Myers, the ETF editor-in-chief for AssetTV, joins with more.

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