Trump names Kevin Warsh as new pick for Fed chair

President Trump announced he will nominate former Fed governor Kevin Warsh to replace Jerome Powell when Powell's term ends in May, and the nomination requires Senate confirmation.

President Donald Trump announced he will nominate former Federal Reserve governor Kevin Warsh to be the next chair of the Federal Reserve. Warsh would take the position when Jerome Powell's term expires in May. The selection follows an extended and public search and has drawn swift market and political reactions. The nomination must be confirmed by the U.S. Senate. Key facts: - Trump announced Kevin Warsh as his nominee to succeed Jerome Powell when Powell's term ends in May. - The nomination requires Senate confirmation; initial responses in Congress broke along party lines, with praise from Sen. Tim Scott and criticism from Sen. Elizabeth Warren. - Warsh served on the Fed's board from 2006 to 2011 and was the youngest governor in its history; he is currently a fellow at the Hoover Institution and a lecturer at the Stanford Graduate School of Business. - Historically described as a monetary-policy hawk who objected to some low-rate policies after the 2008 recession, Warsh has more recently said in public speeches and columns that he supports lower rates. - Financial markets moved on the announcement; markets fell overnight then appeared to stabilize, gold fell about five percent and silver tumbled roughly 13 percent while the U.S. dollar regained some ground. - Warsh has been publicly critical of the Fed's recent direction and of Jerome Powell, saying the institution's policy approach needs change and that the Fed has engaged on topics he views as outside its mandate. Summary: If the Senate confirms the nomination, Warsh could be elevated to chair when Powell's term ends in May. The pick has prompted discussion about the Fed's policy direction and its institutional independence. The next formal step is Senate consideration of the nomination.