Central BanksMediumUpdated×10•Originally published 15 April 2026•Updated 17 April 2026•

1 min read

Trump Nominates Kevin Warsh to Replace Jerome Powell as Fed Chair

Key Facts

1Fed's Beth Hammack signaled that the central bank may not be able to treat supply shocks as temporary given the already elevated inflation levels.

2Hammack's baseline expectation is for monetary policy to remain on hold 'for a good while.'

3The US is entering a new energy shock against a backdrop of already high inflation.

President Donald Trump has nominated Kevin Warsh to succeed Jerome Powell as the Chair of the Federal Reserve, marking a significant leadership transition. This nomination comes as the central bank grapples with internal divisions over supply shocks and geopolitical impacts on inflation. Bill Dudley, former President of the NY Fed, noted that Warsh must now win the 'hearts and minds' of FOMC members and demonstrate clear institutional independence. The transition occurs amidst ongoing concerns regarding stagflation risks and the trajectory of Quantitative Tightening (QT). Warsh will be tasked with navigating a complex economic landscape while establishing credibility within the Fed's policy-making committee.

5 months ago

Version History

Version 105 months ago

What changed: Updated the story to include the nomination of Kevin Warsh as Fed Chair and Bill Dudley's comments on his independence.

Version 95 months ago

What changed: The story was updated to include the Fed's April inflation forecast, which suggests potential threats to the stock market recovery.

Version 85 months ago

What changed: Added a counter-argument from Forbes suggesting that energy-driven inflation might be transitory and may not fundamentally alter the long-term economic trajectory or Fed policy.

Version 75 months ago

What changed: Updated to include John Williams' specific warning regarding the Iran war's direct impact on slowing economic growth (stagnation risk) beyond just inflationary pressures.

Version 65 months ago

What changed: New York Fed President John Williams confirmed that geopolitical energy shocks are now actively manifesting in inflation data across transport and food sectors.

Version 55 months ago

What changed: Updated to include the Fed's internal split on rate direction, new geopolitical tensions involving Iran, and the historical context of gold's reaction to Fed uncertainty.

Version 45 months ago

What changed: The story was updated to include the shift in stance from dovish official Stephen Miran, who reduced his projected rate cuts due to persistent inflation and energy price shocks.

Version 35 months ago

What changed: Updated the story to include Beth Hammack's comments on keeping rates on hold and the shift toward a data-dependent approach to balance inflation and employment risks.

Version 25 months ago

What changed: The story was updated to include Fed Beige Book data highlighting the impact of energy shocks on corporate margins and the slowing of economic growth momentum.

Version 15 months ago

What changed: Updated to include political hurdles facing Kevin Warsh's nomination and his advocacy for aggressive balance sheet reduction (QT).