Who Is the New Fed Chair? - The Journal Recap

Podcast: The Journal

Published: 2026-01-30

Duration: 20 minutes

Guests: Nick Timiraos

Summary

Kevin Warsh is set to be nominated as the new chairman of the Federal Reserve by President Trump, promising a shift in policy direction.

What Happened

President Trump has announced that Kevin Warsh will be nominated as the next chairman of the Federal Reserve. Warsh, a former Fed governor and critic, is known for his support of Trump's economic policies. The decision comes after a long selection process where Warsh was a frontrunner from the start.

Warsh has a history with the Federal Reserve, having served as a governor during the 2008 financial crisis. Initially supportive of the Fed's policies, he later became a critic, especially of the easy money policies that followed the crisis.

A key aspect of Warsh's appointment is his stance on interest rates. While Trump prefers low rates, Warsh has expressed skepticism about the Fed's traditional inflation models and has called for a reevaluation of monetary policy.

Warsh's nomination comes at a time when the current Fed chair, Jerome Powell, faces a criminal investigation, complicating the confirmation process. Senator Tom Tillis has stated he will not support any Fed nominees until the investigation is resolved.

The episode explores Warsh's transformation from a traditional Fed insider to a proponent of significant changes in how the Fed operates. His potential confirmation could mark a shift towards less conventional monetary policy approaches.

Warsh's views on Fed independence have evolved over time, raising questions about how he will navigate political pressures. While he once advocated for Fed autonomy, he has recently downplayed concerns about presidential influence on the Fed.

The confirmation process could be delayed due to the ongoing investigation into Powell, highlighting tensions between maintaining Fed independence and political oversight.

Key Insights