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President Trump Nominates Kevin Warsh to Lead the Fed

February 3, 2026

On January 30, President Trump announced that he will nominate Kevin Warsh to succeed Jerome Powell as the next Chair of the Federal Reserve.

• Other potential candidates had included BlackRock executive Rick Rieder, Trump economic adviser Kevin Hassett, and current Fed board member Christopher Waller.

Warsh, a former Morgan Stanley banker and member of the Federal Reserve Board of Governors during the great financial crisis, is currently a visiting fellow at Stanford’s Hoover Institution. 

Hawk or Dove? While Fed governor during the financial crisis, Warsh gained a hawkish reputation, particularly when he started to share his opposition to then chair Ben Bernanke’s QE strategy. 

• He has expressed more dovish views lately. As reported by Politico, in an appearance on Fox Business News last summer, Warsh said:

Economic growth in the U.S. is poised to boom, but it’s being held down by bad economic policies coming from the central bank. Interest rates should be lower. The balance sheet should be smaller.

What’s next: Warsh does not face a straightforward path to confirmation. Some Republican senators are concerned about the Fed’s independence in light of the Justice Department’s investigation into Chair Powell’s Congressional testimony about cost overruns related to the Fed headquarters renovation. 

• Sen. Thom Tillis (R-N.C.), whose vote on the Senate Banking Committee is necessary to advance Warsh’s nomination to the Senate floor, said Warsh “is a qualified nominee with a deep understanding of monetary policy.”
• However, Tillis reiterated on Friday that he will oppose any Fed nominee until the Justice Department’s probe has been resolved. 
• TD Cowen’s Jaret Seiberg noted that, in theory, Tillis could block Warsh’s nomination until he retires from the Senate at the end of 2026.

What they're saying: Warsh’s nomination has been received positively by Wall Street and the business community. In a statement issued on Friday, CREFC President & CEO Lisa Pendergast said: 

Federal Reserve policy has a direct and significant impact on commercial real estate finance, influencing interest rates, liquidity, and the availability of capital across CRE lending and securitization markets. Strong, transparent leadership at the Fed is essential to maintaining market stability and supporting economic growth.

We look forward to engaging with Mr. Warsh and policymakers throughout the confirmation process and beyond to advance policies that promote a healthy, resilient commercial real estate finance system.

Please contact Sairah Burki (sburki@crefc.org) with questions.

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