KEY POINTS
- President Trump intends to reveal his selection for the next Federal Reserve chair on Friday morning.
- Former Federal Reserve Governor Kevin Warsh has emerged as the leading candidate after a White House meeting.
- The upcoming appointment aims to replace current chair Jerome Powell whose leadership term concludes in May.
President Trump confirmed he will name the next leader of the Federal Reserve on Friday morning. This decision follows months of public debate regarding the future of the American central bank. The announcement is expected to conclude intense speculation about who will manage the nation’s monetary policy.
Former Federal Reserve Governor Kevin Warsh is currently the top contender for the position. He reportedly visited the White House on Thursday to meet with the President. Sources indicate that Warsh made a strong impression during these discussions. He previously served on the Fed board from 2006 to 2011.
The President described his pick as a highly respected figure in the financial community. He noted that many people expected this individual to lead the bank years ago. Warsh was a finalist for the same role in 2017 before Jerome Powell was chosen.
This move comes at a time of friction between the White House and the central bank. The President has frequently criticized current interest rate levels. He argues that rates remain too high and should be lowered to boost growth. The current benchmark rate sits between 3.50 percent and 3.75 percent.
The Federal Reserve recently opted to keep interest rates steady. This decision followed three separate rate cuts made during 2025. The President maintains that deeper cuts are necessary for the economy. He has expressed a desire for a leader who shares this vision.
Beyond Warsh, other names on the short list included Christopher Waller and Rick Rieder. White House advisor Kevin Hassett was also considered for the role. However, the President recently suggested Hassett should remain in his current position. This shift further solidified Warsh’s standing as the frontrunner.
Financial markets have reacted sharply to the news of a potential Warsh nomination. Stock futures dipped while the US dollar gained strength. Investors view Warsh as a candidate who might take a firmer stance on certain economic policies. Gold prices also saw a significant decline following the reports.
Jerome Powell will finish his four-year term as chair in May. While his leadership role ends then, his seat on the board continues until 2028. This transition marks a pivotal moment for the independence of the Federal Reserve. Observers are watching closely to see how the new leader will balance political pressure.
The final confirmation of the nominee will require approval from the Senate. If confirmed, the new chair will face the challenge of managing inflation while meeting growth targets. The official announcement is set for early Friday.
