Trump Taps Kevin Warsh for Fed Chair, Replacing Powell in May

In a post on his Truth Social platform, Trump said, "I am pleased to announce that I am nominating Kevin Warsh to be the CHAIRMAN OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM."

"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. On top of everything else, he is 'central casting,' and he will never let you down."

Notably, Warsh was interviewed for the job in 2017, which eventually went to Jerome Powell, whose term as chair expires in May of this year.

Earlier, Trump had confirmed his leading choices to replace the current US Federal Reserve Chair Jerome Powell, naming three of his close aides as top picks for the position.

Trump had confirmed the names of Kevin Hassett, Kevin Warsh, and Christopher Waller as his leading choices to replace Jerome Powell.

The US Federal Reserve, in its latest policy meeting held on January 27-28, decided to keep its key benchmark interest rates unchanged at 3.5 to 3.75 per cent, citing low job gains, signs of stabilisation in the labour market, and inflation that remains somewhat elevated.

In its policy statement released on January 28, the Federal Open Market Committee (FOMC) said, "In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 per cent."

The decision was largely in line with expectations. The FOMC voted 10-2 to leave the federal funds rate target range unchanged at 3.5-3.75 per cent. Governors Waller and Miran dissented from the decision, casting a dovish dissent in favour of a 25-basis-point rate cut.

- ANI