For Kevin Warsh, the announcement comes with the taste of vindication. US President Donald Trump nominated the economist to be the next chair of the US Federal Reserve on Friday, January 30, for a term beginning May 15. In 2018, Trump passed over Warsh at the last minute for the same position in favor of Jerome Powell, the current head of the institution.
“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 posted on his Truth Social network on Friday. “On top of everything else, he is ‘central casting,’ and he will never let you down.”
Warsh stills needs confirmation by the Senate, which might not be an easy process, with concerns over the Fed’s independence unsettling lawmakers and financial circles alike. One Republican senator, Thom Tillis, had already announced his intention to block any nomination until the legal proceedings against Powell are resolved. Powell is under Department of Justice scrutiny for his testimony before Congress regarding the cost overruns in the Fed’s building renovations. Such scrutiny is widely seen as retaliation by the Trump administration, unhappy with Powell’s leadership at the Fed, and particularly with his refusal to comply with presidential directives.
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