US President Donald Trump has put forward Kevin Warsh as his nominee to chair the Federal Reserve, while existing chair Jerome Powell faces investigation by US prosecutors.
Warsh has experience in both the public and private sectors.
He previously sat on the Federal Reserve board of governors between 2006 and 2011, starting at age 35 as its youngest-ever member.
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During his tenure, he was involved in policy decisions throughout the 2008 financial crisis and represented the Fed at international forums such as the G-20.
Additionally, between 2002 – 2006, Warsh was Special Assistant to the President for Economic Policy and as Executive Secretary of the National Economic Council.
Earlier, he was part of Morgan Stanley’s mergers and acquisitions department.
Warsh is currently affiliated with Stanford University’s Hoover Institution as a visiting fellow in economics and is a lecturer at its Graduate School of Business.
He is also a partner at Duquesne Family Office.
Besides, Warsh has contributed research to central banking practice; a report he wrote for the Bank of England led to reforms adopted by UK Parliament concerning monetary policy procedures.
In a post on Truth Social, Trump said: “I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best. On top of everything else, he is “central casting,” and he will never let you down.”
The nomination comes as Powell, who has chaired the Fed since 2018 and was reappointed in 2022, faces a federal inquiry into his statements to Congress regarding the Federal Reserve’s building-renovation project.
Last week, federal authorities issued grand jury subpoenas to the central bank, reportedly focusing on whether Powell misled lawmakers during testimony last June.
Investigators are also reviewing expenditure records connected to the renovation and have contacted Powell’s staff multiple times, according to The New York Times.
Powell said that the Department of Justice’s move to issue him grand jury subpoenas was a pretext intended to pressure the central bank into implementing additional interest rate reductions.
“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President,” he said in a statement.
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