Stocks Fall as Trump Set to Name Long-Time Hawk as Fed Chair
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Kevin Warsh, former governor of the US Federal Reserve.
Photographer: David Paul Morris/Bloomberg
The intrigue regarding who is going to be the next chair of the Federal Reserve will soon be over. Donald Trump is preparing to announce Kevin Warsh to succeed Jerome Powell, according to people familiar with the matter. The president is planning to reveal his pick on Friday morning in Washington DC, though the people cautioned that the decision is not final until Trump announces it. Prediction markets showed a surge in bets on Warsh on Thursday.
A former Fed governor, Warsh was one of the four finalists on the shortlist to be the next central bank leader. The appointment would mark a comeback for the 55-year-old, whom the president passed over for the top job in 2017 when he selected Powell. Warsh has aligned himself with the president in recent months by arguing publicly for lower interest rates, going against his longstanding reputation as an inflation hawk.