US President Donald Trump has made his long-awaited announcement - Kevin Warsh, a former Federal Reserve governor who has publicly criticized the US central bank on multiple occasions, is his top pick for the next Fed chair. The move comes after months of speculation about who would replace Jerome Powell's second term as head of the Fed, which ends in May.
Warsh, 55, was also considered for the job back in 2017 when Powell took over, but ultimately missed out. Trump's decision has been met with mixed reactions from economists and politicians, with some hailing Warsh as a relatively safe choice, while others have expressed concerns that he might be too closely tied to Trump's agenda.
Warsh's record speaks for itself - as Fed governor between 2006 and 2011, he was part of the team that navigated the US through the aftermath of the global financial crisis. However, his views on monetary policy have shifted over time, and he has since become a vocal critic of the Fed's expansive balance sheet and its approach to interest rates.
As a former Wall Street insider, Warsh has deep ties to the industry, which could make him an attractive choice for Trump. However, his own views on inflation risks in the US - echoed by the White House - have raised eyebrows among economists who fear that his appointment could lead to higher long-term bond yields and a reduced balance sheet.
The nomination still needs to be confirmed by the Senate, where Republican Senator Thom Tillis has indicated that he would block any of Trump's Fed nominees until the investigation into Powell's second term is resolved. Meanwhile, Democrat Elizabeth Warren has warned that no Republican should support Warsh's nomination unless they genuinely care about Fed independence.
As the market digests the news, dollar strength is up 0.5% against a basket of currencies, while gold and silver have taken a hit. Wall Street traded slightly lower, with the benchmark S&P 500 down 0.5% in New York.
Warsh, 55, was also considered for the job back in 2017 when Powell took over, but ultimately missed out. Trump's decision has been met with mixed reactions from economists and politicians, with some hailing Warsh as a relatively safe choice, while others have expressed concerns that he might be too closely tied to Trump's agenda.
Warsh's record speaks for itself - as Fed governor between 2006 and 2011, he was part of the team that navigated the US through the aftermath of the global financial crisis. However, his views on monetary policy have shifted over time, and he has since become a vocal critic of the Fed's expansive balance sheet and its approach to interest rates.
As a former Wall Street insider, Warsh has deep ties to the industry, which could make him an attractive choice for Trump. However, his own views on inflation risks in the US - echoed by the White House - have raised eyebrows among economists who fear that his appointment could lead to higher long-term bond yields and a reduced balance sheet.
The nomination still needs to be confirmed by the Senate, where Republican Senator Thom Tillis has indicated that he would block any of Trump's Fed nominees until the investigation into Powell's second term is resolved. Meanwhile, Democrat Elizabeth Warren has warned that no Republican should support Warsh's nomination unless they genuinely care about Fed independence.
As the market digests the news, dollar strength is up 0.5% against a basket of currencies, while gold and silver have taken a hit. Wall Street traded slightly lower, with the benchmark S&P 500 down 0.5% in New York.
also, i'm lowkey worried about inflation risks and bond yields taking a hit... like dont we wanna keep the economy stable here? 
he was part of that team that saved the US economy after the crisis, which is a huge deal. But at the same time, I get why some economists are worried - his views on monetary policy have shifted over time, and now he's aligning with Trump's agenda? That's a concern for sure 
and who knows, maybe we'll even see some major changes on the horizon? 
Keep an eye out for what happens next, folks! 
... it's kinda weird. And what's with his ties to Wall Street? That's gonna create some serious conflict of interest issues 
. And what about his ties to Wall Street? I'm not sure that's something we want our central bank having too close of a relationship with 
. I'm gonna keep an eye on this one 
but on the other hand, he's also been vocal about criticising fed policies and now hes being considered for a top role... that seems kinda weird... 
which might make him super accountable to the industry. anyway, i'm curious to see how the Senate reaction plays out - is this gonna get messy? 
so trump's got his top pick for fed chair... and it's like he took a look at warsh's resume and said "yep, this guy's gonna be good for me"... i mean, who wouldn't want a former wall street insider at the helm of the fed? 
just imagine warsh trying to regulate himself 
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. But like, at the same time, I'm hella nervous about how this is gonna affect the economy and interest rates 
. And can we talk about how the market is already reacting? Dollar strength up 0.5% and gold and silver taking a hit? That's some crazy stuff 
!
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I'm rooting for him to prove all his naysayers wrong, but at the same time, I'm super curious to see how he'll navigate the complex world of monetary policy. 
but then again, his views on the fed's balance sheet have shifted and now he's anti-expansionist?