U.S. President Donald Trump is expected to announce his choice for the next chair of the Federal Reserve on Friday, following a White House meeting with former Fed Governor Kevin Warsh, according to people familiar with the discussions.
Speaking to reporters at the Kennedy Center on Thursday, Trump said the decision would be revealed the next morning and suggested the candidate was someone long considered for the role. “It’s somebody that could have been there a few years ago,” he said. “I think it’s going to be a very good choice.”
A source later confirmed that Warsh met with Trump at the White House earlier that day.
A Reconsidered Choice
During his first term, Trump passed over Warsh in favor of Jerome Powell, a decision he later criticized after Powell declined to cut interest rates as aggressively as Trump wanted.
This time, Trump has made support for lower borrowing costs a central requirement for the role. Warsh, along with the other finalists identified by Trump’s advisers, has argued publicly that the Fed should have eased monetary policy more than it has.
The nomination of Powell’s successor—who must be confirmed by the U.S. Senate—comes amid unusually forceful efforts by the president to exert influence over the central bank, an institution traditionally shielded from political pressure to safeguard its inflation-fighting credibility.
Fed Independence Under Strain
Trump’s broader campaign includes an attempt to remove Fed Governor Lisa Cook, a move now under review by the Supreme Court, and a Justice Department investigation that Powell has described as part of an effort to intimidate the Fed.
Powell’s term as chair ends in May. He has not said whether he will remain on the Board of Governors afterward, a rare step that would deny Trump another immediate vacancy and complicate leadership dynamics under a new chair. Powell’s term as a governor runs through 2028.
Trump’s pledge to announce the nominee Friday marked a shift from comments made just hours earlier, when he said the decision would be unveiled next week. The White House schedule released late Thursday did not explicitly list an announcement, showing instead an executive order signing session and a policy meeting.
Warsh Faces Political and Market Scrutiny
The choice of Fed chair could face hurdles in Congress. Republican Senator Thom Tillis has warned he may block Fed nominations until the Justice Department investigation is resolved.
Warsh, 55, served as a Fed governor from 2006 to 2011 and was a key liaison to Wall Street during the 2008 financial crisis under then-Chair Ben Bernanke. In recent months, he has echoed Trump’s calls for deeper rate cuts and criticized the Fed for underestimating the disinflationary effects of productivity gains driven by artificial intelligence.
Questions of Independence
With a background in finance—including a role managing investments linked to Stanley Druckenmiller—and family ties to Trump ally Ron Lauder, Warsh is expected to face intense scrutiny over his independence from the White House.
Although not formally part of Trump’s inner circle, Warsh has been a confidant of the president and a frequent guest at his Florida estate. Analysts say he could effectively serve as a “shadow” Fed chair until Powell’s term expires in mid-May.
Policy Vision and Fed Pushback
Now a lawyer and visiting fellow in economics at Hoover Institution, Warsh has called for a sweeping overhaul of the Fed, including a smaller balance sheet and lighter banking regulation. He argues that shrinking the balance sheet would free up liquidity and allow lower policy rates.
That view has gained little traction with the current Fed, which cut rates three times in 2025 but this week left its benchmark rate unchanged at 3.50%–3.75% and signaled no urgency to ease further. The central bank has also paused balance-sheet reductions to maintain ample banking reserves.
Other Contenders
Other names previously floated for the role include Rick Rieder, chief investment officer for global fixed income at BlackRock; Fed Governor Christopher Waller, one of two officials who dissented against holding rates steady this week; and White House economic adviser Kevin Hassett, a vocal supporter of Trump’s unconventional economic policies.
As markets await Friday’s announcement, Trump’s pick is set to shape not only U.S. monetary policy but also the future balance between presidential power and central bank independence.