Trump Taps Warsh to Lead Federal Reserve

Nominee seeks to return Fed to narrow price stability mandate

Feb. 6, 2026 at 6:15pm

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Former Federal Reserve governor Kevin Warsh, nominated by President Trump to lead the central bank, is known as an "inflation hawk" who wants to scale back the Fed's expanded role in financial markets and the economy. Warsh, who served on the Fed's board from 2006-2011, has been critical of the Fed's prolonged easy money policies and growing activism beyond its core price stability mandate.

Why it matters

Warsh's nomination signals a potential regime change at the Fed, moving it away from its expanded interventionist role in recent years and back towards a narrower focus on controlling inflation. This could have significant implications for financial markets, government spending, and the Fed's independence from political influence.

The details

As a research assistant to Milton Friedman in college, Warsh shares the economist's skepticism of Fed overreach. He has argued the central bank should concentrate solely on price stability rather than taking on objectives like climate change and inclusive employment. Warsh was critical of the Fed's quantitative easing program under Ben Bernanke, seeing it as an emergency measure that became a permanent fixture. He believes the Fed's easy money policies have enabled irresponsible government spending and excessive risk-taking in financial markets.

  • Warsh served on the Federal Reserve's Board of Governors from 2006 to 2011, nominated by President George W. Bush.
  • Warsh published an op-ed last year criticizing the Fed's continued easy money policies after the 2008 financial crisis.

The players

Kevin Warsh

A former Federal Reserve governor nominated by President Trump to lead the central bank. Warsh is known as an "inflation hawk" who wants to return the Fed to a narrower price stability mandate.

Milton Friedman

The renowned economist who was Warsh's mentor and who famously suggested the Fed could be replaced by a computer, given his skepticism of central bank activism.

Ben Bernanke

The former Federal Reserve chair whose quantitative easing program Warsh was critical of, seeing it as an emergency measure that became permanent.

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What they’re saying

“The Fed has neither the expertise nor the prerogative to make political judgments in these areas.”

— Kevin Warsh, Former Federal Reserve Governor

“When the crisis ended, the Fed never retraced its steps.”

— Kevin Warsh, Former Federal Reserve Governor

What’s next

If nominated and confirmed, Warsh would lead the Federal Reserve in a new direction, scaling back its expanded role in the economy and financial markets in favor of a narrower focus on price stability.

The takeaway

Warsh's nomination signals a potential return to a more traditional central banking model at the Fed, moving away from the activist, interventionist approach of recent years. This could have significant implications for government spending, financial markets, and the Fed's independence.