“Trump’s Bold Move: Could Kevin Warsh Replace Fed Chair Powell in an Upcoming Shakeup?” | CNN Business

President Donald Trump isn’t shy about his feelings for Federal Reserve Chair Jerome Powell. Recently, he expressed strong disdain, suggesting that Powell’s departure is overdue. During an Oval Office event, he stated that if Powell wants out, he’ll be “out of there real fast.”

Many experts argue that the president doesn’t really have the authority to dismiss the Fed chief simply over policy disagreements. However, Trump’s readiness to challenge norms raises concerns about potential fallout.

Speculation is growing about who might replace Powell when his term ends in May 2026 or possibly sooner. Kevin Warsh, a former Fed governor, seems to be a prime candidate. Warsh was previously on Trump’s radar for Treasury Secretary and had considered leading the Fed during Trump’s first term.

Recent statements from Treasury Secretary Scott Bessent indicate that interviews for Powell’s successor could begin this fall. He emphasized that “monetary policy is a jewel box that’s got to be preserved.” This highlights the significance of the Fed’s role, especially in uncertain economic times.

So, who is Kevin Warsh? At 55, he’s had a notable career. Before his time at the Fed, he worked at Morgan Stanley and served in the George W. Bush administration as a special assistant on economic policy. He was appointed to the Fed’s Board of Governors in 2006.

During the Great Recession, he faced monumental challenges, helping facilitate critical financial decisions. His tenure wasn’t without controversy, as he allowed Lehman Brothers to fail, a decision that echoed through global markets. Warsh left the Fed in 2011 after disagreeing with its bond-buying strategy.

More recently, Warsh has been active in economic discourse. He advised Trump’s transition team and has criticized the Fed’s handling of inflation. In a recent op-ed, he suggested that the high inflation rates stemmed from excessive government spending and a central bank that printed too much money. However, many mainstream economists argue that the inflation spike in 2021 was primarily due to pandemic-related disruptions.

Warsh has also articulated that the Fed should avoid political speculation, citing moments where officials expressed concerns over Trump’s policies impacting inflation. He believes every economic choice made by the Fed has lasting effects, calling many of their decisions “bad choices.”

In a recent interview, Warsh reflected on the economic challenges the current administration inherited, suggesting it would take time to rectify the situation. He’s spoken about the impact of Trump’s tariffs and how they may affect inflation, emphasizing the need for careful fiscal management.

Warsh’s current roles include being a distinguished fellow at the Hoover Institution, a visiting scholar at Stanford, and an adviser to the Congressional Budget Office. His experience and perspective could shape the Fed’s future if he steps into the role.

The discussion around the Fed’s leadership continues to evolve, with public opinion divided on the influence of political views in economic policy. As we ponder future directions, Warsh’s insights will likely be pivotal in the ongoing conversation about America’s economic health.

For more on Warsh’s views, you can explore his articles in outlets like The Wall Street Journal, where he frequently shares his perspectives on economic matters.



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