Trump names Kevin Warsh as nominee to replace Powell as Fed chair

President Trump announced he will nominate former Fed governor Kevin Warsh to succeed Jerome Powell when Powell's term ends in May; the nomination requires Senate confirmation and has drawn reactions from lawmakers and financial markets.

President Donald Trump announced he will nominate former Federal Reserve governor Kevin Warsh to be the next chair of the Federal Reserve, replacing Jerome Powell when Powell's term ends in May. Warsh served on the Fed's board from 2006 to 2011 and was the youngest governor when appointed at age 35. He is currently a fellow at the Hoover Institution and a lecturer at the Stanford Graduate School of Business. The choice follows an unusually public search and will require Senate confirmation. Key details: - The nomination was announced by the president and would require Senate confirmation before Warsh could assume the chairmanship. - Warsh was a Fed governor from 2006 to 2011, has been described as historically hawkish on interest rates, and in recent years has also voiced support for lower rates in speeches and opinion pieces. - Financial markets reacted with a rise in the dollar and long-term Treasury yields; the 10-year yield was reported at 4.26%, and gold and silver experienced sharp declines. - Sen. Thom Tillis said he will oppose the nomination until a Justice Department investigation into Powell is resolved; Senate Majority Leader John Thune said confirmation without Tillis's support is "probably not." Democratic Sen. Elizabeth Warren characterized the move as part of an effort to seize control of the Fed. - If confirmed, Warsh would fill a seat on the Fed's governing board and could be elevated to chair when Powell's term expires in May. - The article notes Warsh has recently praised aspects of the president's economic policies and has been critical of the Fed's direction under Powell. Summary: If the Senate confirms Warsh, he would succeed Powell in May and his perspectives could lead to changes in the Fed's approach. The nomination now moves to the Senate committee process, where some lawmakers have indicated opposition tied to ongoing investigations and concerns about Fed independence.