Trump expected to announce Warsh as Fed pick: reports
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President Trump is expected to nominate Kevin Warsh, a former Fed governor and Wall Street veteran, on Friday morning to succeed Jay Powell as Federal Reserve chair, multiple outlets reported.
Why it matters: The Fed pick "is arguably the most important personnel decision Trump faces for the remainder of his term, because the central bank serves as a first responder in financial crises and sets interest rates that affect every corner of the economy and markets," The Wall Street Journal reports.
- The reports had an immediate impact on global financial markets, with the dollar strengthening and overheated precious metals markets plunging.
Driving the news: Warsh met with Trump at the White House Thursday.
- Trump said last evening that his pick "won't be surprising to people. ... A lot of people think that this is somebody that coulda been there a few years ago."
- Warsh's odds surged on prediction markets, running at 95% on Polymarket early Friday (a market with more than $300 million wagered, underlining just how much the pick matters globally).
The big picture: Warsh has expressed confidence that Trump's tax and deregulatory policies are generating a growth surge, and that the Fed should allow it to boom rather than act to restrain it.
- He wrote in November that "the U.S. is poised to grow faster than any other major economy," and that this is ""thanks in large part to pro-growth policies championed by President Trump."
- He brings deep relationships in Republican politics and on Wall Street to the job — as well as a healthy skepticism for recent Fed policy.
Zoom in: This is a sweet comeback for Warsh: Trump passed over him for Powell in 2017.
- Warsh, 55, was first appointed to the Fed by President George W. Bush, and was on the Board of Governors from 2006 to 2011.
- He has become a Fed critic, and said in 2017 that the central bank needs "regime change" to restore credibility. He has degrees from Stanford and Harvard Law.
- He is married to Jane Lauder, heir of the Estée Lauder cosmetics empire.
Between the lines: The White House hasn't yet confirmed the expected pick, but it's being widely reported.
- Powell's term ends in May.
What to watch: The Senate would have to confirm Warsh.
- Some senators have suggested they might stand in the way of any replacement for Powell, in anger over threats to the Fed's independence.
Go deeper: Trump challenges will define Powell's drama-filled final months as Fed chair
Editor's note: This is a developing story. Check back for updates.
