Trump Taps Kevin Warsh to Lead Federal Reserve

President Trump has officially nominated former Fed Governor Kevin Warsh to succeed Jerome Powell as Chairman of the Federal Reserve when Powell’s term ends in May. The announcement has sent ripples through the fixed-income markets, as Warsh is widely viewed as a "hawk" who may prioritize shrinking the Fed's $6.6 trillion balance sheet.

The nomination has introduced a new layer of friction in Washington. While the administration seeks lower mortgage rates to stimulate housing, Warsh’s history suggests a preference for tighter monetary discipline, leading to concerns that the Fed may clash with the White House’s broader economic agenda over the next four years.