How economists, lawmakers are reacting to Trump's Fed chair pick
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CEOs and some White House critics praised President Trump's pick of Kevin Warsh to lead the Federal Reserve — even as key lawmakers signal potential hurdles to confirmation.
Why it matters: Economists feared Trump would install a loyalist to push down interest rates, but tapping former Fed official Kevin Warsh — viewed as a credible policymaker by Republicans and business leaders — has eased those concerns, at least somewhat.
Driving the news: "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 said in a post on Truth Social.
- Trump told reporters on Friday that he did not ask whether Warsh was committed to slashing rates.
- "I want to keep him nice and pure. But he certainly wants to cut rates. I have been watching him for a long time," Trump said.
What they're saying
Several CEOs were quick to praise Warsh shortly after Trump announced the nomination.
- "Kevin Warsh is a highly respected and experienced leader — across government, business and education — who I have seen act with integrity and a dedication to making our country better," JPMorgan CEO Jamie Dimon, the most influential Wall Street executive, said in a statement.
- "Having known Kevin Warsh for decades, he's uniquely prepared — in judgment, experience, and temperament — to serve our country at this critical time," Chevron CEO Mike Wirth said in a statement.
Between the lines: Along with Warsh's long history in the public eye comes close scrutiny of previous positions, which critics say he has recently shifted to be more in line with and more palatable to Trump.
- Warsh has historically leaned more hawkish, preferring higher interest rates in a bid to keep a lid on inflation. More recently, however, he has criticized the Fed for keeping rates too high.
"The branding of Kevin as someone who's always hawkish is not correct ... I've seen him go both ways," billionaire investor Stanley Druckenmiller told the Financial Times in an interview on Friday.
- Warsh worked for Druckenmiller's family office. Druckenmiller is a long-time mentor to Treasury Secretary Scott Bessent, who played a central role in the Fed chair selection process.
The intrigue: Some liberal economists also praised Warsh, but cautioned that Warsh shouldn't bow to Trump's calls for lower rates.
- "Kevin Warsh is well above the bar on both substance and independence to be Chair of the Federal Reserve," Jason Furman, who served as the top economic advisor to former President Obama, wrote on X.
- But he added: "The Senate should ask tough questions about his independence & President Trump should reduce the threat to it. Hopefully that will make it clear Warsh should be confirmed."
Former Bush-era Secretary of State Condoleezza Rice also praised Warsh on X, noting "we will benefit from his steady, principled leadership."
- "Kevin is a dedicated public servant with the intellect, experience, and judgment to lead the Federal Reserve," Rice posted.
- Warsh, a former economic advisor to former president Bush, is a fellow at the Hoover Institution, where Rice serves as the director.
Canadian prime minister Mark Carney, a former two-time central banker who is embroiled in trade-related spats with Trump, also praised the Warsh pick.
- "Kevin Warsh is a fantastic choice to lead the world's most important central bank at this crucial time," Carney said on X.
- Warsh was commissioned to lead an independent review of the Bank of England when Carney was governor of the central bank. Both Warsh and Carney have overlapped in international finance groups, like the Group of Thirty, a global central banking forum.
What we're watching
Sen. Thom Tillis (R, N.C.) is the key roadblock to Warsh's confirmation. Fed officials need to be confirmed by a key Senate banking panel where Republicans have a slim majority.
- Tillis called Warsh a "qualified nominee with a deep understanding of monetary policy," but said he would not vote to confirm any Fed nominee until the DOJ investigation into current chair Jerome Powell related to the central bank's headquarters renovation was resolved.
The backdrop: Powell was first nominated by Trump in 2017, but his relationship with his pick quickly turned contentious as the president unleashed a pressure campaign to lower rates.
- That relationship has become rockier during Trump's second term as he ramped up efforts to push for lower rates.
- Powell said the recent criminal investigation into his conduct was a result of the Fed not bowing to Trump's pressure.
The other side: Some prominent Democrats on that panel were skeptical of Warsh, referring to Trump's previously telegraphed efforts to install a Fed chair that will lower rates.
- In a statement, Sen. Mark Warner (D, Va.) said: "It is difficult to trust that any Chair of the Federal Reserve selected by this president will be able to act with the independence required of the position."
- Sen. Elizabeth Warren (D, Mass.) called on Republicans to withhold confirmation "until Trump drops his witch hunts of current Fed Chair Jerome Powell and Governor Lisa Cook," referring to the Powell DOJ probe and Trump's efforts to fire a separate top Fed official.

