Kevin Warsh expected to be nominated as next Fed Chair by Donald Trump

Kevin Warsh is currently the leading candidate to become the next Chair of the Federal Reserve and is expected to be nominated today by Donald Trump.

Hence, if Warsh assumes the role, investors are increasingly factoring in the possibility of fewer interest-rate cuts, a scenario that would imply tighter monetary policy, slower economic growth, weaker equity markets, falling bond prices, and a stronger US dollar.

Although Warsh has recently aligned with Trump by supporting lower borrowing costs, economists caution that his true policy stance remains uncertain in today’s complex political environment.

Meanwhile, as the Trump administration prepared to nominate Warsh, a choice viewed as more hawkish than other contenders, both stocks and US Treasury bonds moved lower.

But who is Kevin Warsh?

Warsh first gained national prominence in the George W. Bush administration, serving as Special Assistant for Economic Policy and Executive Secretary at the National Economic Council.

In this role, he advised the president and senior officials on capital markets, securities, banking, and insurance issues and was a member of the President’s Working Group on Financial Markets.

Warsh played a key role in decision-making during the global financial crisis and represented the Fed at the G-20. Indeed, he was later nominated to the Federal Reserve Board of Governors in 2006 and served until 2011.

Before his public service, Warsh began his career in 1995 at Morgan Stanley & Co. in New York, working in mergers and acquisitions, advising companies across various industries, structuring capital markets transactions, and facilitating financing.

Benedetta Zimone