Trump Taps Fed Critic Kevin Warsh to Lead Central Bank

Warsh's past role in crisis response and current policy views could signal major shifts at the Fed.

Published on Feb. 8, 2026

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President Trump has nominated Kevin Warsh, a former Federal Reserve governor who was involved in the central bank's crisis response efforts during the 2008 financial meltdown, to serve as the next chair of the Federal Reserve. Warsh has emerged as a vocal critic of the Fed's subsequent policies, including large-scale asset purchases and near-zero interest rates, raising the prospect of a more hawkish approach to monetary policy under his potential leadership.

Why it matters

Warsh's nomination signals a potential shift towards a more critical stance on the Federal Reserve's actions, which could have significant implications for the direction of U.S. monetary policy. As a known critic of the Fed's interventions, Warsh's appointment could lead to higher interest rates, a reduction in the central bank's balance sheet, and a greater emphasis on controlling inflation - potentially impacting economic growth and financial stability.

The details

Warsh served as a Federal Reserve governor during the 2006-2011 period, a pivotal time that encompassed the global financial crisis. He was involved in designing and implementing emergency lending programs aimed at stabilizing credit markets, as well as contributing to the development of the Troubled Asset Relief Program (TARP). However, since leaving the Fed, Warsh has emerged as a vocal critic of the central bank's subsequent actions, warning that large-scale asset purchases and near-zero interest rates risked distorting markets and undermining long-term price stability. This perspective sets him apart from many current and former Fed officials and suggests a potential for significant policy changes if he is confirmed as the next chair.

  • Warsh served as a Federal Reserve governor from 2006 to 2011.
  • President Trump nominated Warsh to serve as the next chair of the Federal Reserve in February 2026.

The players

Kevin Warsh

A former Federal Reserve governor who served during the 2006-2011 period encompassing the global financial crisis. Warsh has since emerged as a vocal critic of the Fed's subsequent policies, including large-scale asset purchases and near-zero interest rates.

President Trump

The current President of the United States, who has nominated Warsh to serve as the next chair of the Federal Reserve.

Tim Scott

The chairman of the Senate Committee on Banking, Housing, and Urban Affairs, who has praised Warsh's deep knowledge of monetary policy and the need for accountability at the Fed.

Jim Banks

A U.S. Senator who has highlighted Warsh's understanding of China's economic ambitions and the importance of maintaining American financial supremacy.

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What they’re saying

“We must have accountability at the Federal Reserve, and Kevin Warsh's deep knowledge of monetary policy makes him an excellent choice to lead the central bank.”

— Tim Scott, Senate Committee on Banking, Housing, and Urban Affairs Chairman (newsy-today.com)

“Warsh's understanding of China's economic ambitions and the importance of maintaining American financial supremacy make him a strong nominee for Federal Reserve chair.”

— Jim Banks, U.S. Senator (newsy-today.com)

What’s next

The Senate Banking Committee will lead the confirmation process for Warsh's nomination to serve as the next chair of the Federal Reserve.

The takeaway

Warsh's nomination signals a potential shift towards a more critical stance on the Federal Reserve's policies, which could lead to significant changes in the central bank's approach to monetary policy, including higher interest rates, a reduction in the balance sheet, and a greater emphasis on controlling inflation. This could have far-reaching implications for the U.S. economy and financial markets.