US Fed Chairman LIVE Updates: Donald Trump picks longtime ally Kevin Warsh to replace Jerome Powell as US Fed chief

President Donald Trump said on Friday that his pick for the next Federal Reserve chair, Kevin Warsh, is keen to reduce interest rates, a move the US leader has been advocating, reported AFP.

Warsh will need to win the confidence of at least three key groups: the Federal Reserve committee members whose votes he must secure to adjust interest rates; financial markets, which could frustrate his attempts to lower borrowing costs if they believe his actions are politically motivated; and perhaps most importantly, Trump, a former real estate developer who has a keen understanding of how even small changes in interest rates can affect heavily indebted businesses, households, and governments, as per AP.

Top White House economic adviser Kevin Hassett said on Friday that he was not disappointed about not being chosen as the next chair of the Federal Reserve, adding that the central bank made a misstep by leaving interest rates unchanged this week, as per Reuters.

When asked whether the Fed erred by keeping its overnight benchmark rate in the 3.5% to 3.75% range on Wednesday, Hassett told CNBC, “yeah, I do.”

He also said, “I think President Trump made a great choice” in selecting former Fed governor Kevin Warsh to lead the central bank.

US stock futures and Treasury yields recovered some ground after President Donald Trump named Kevin Warsh as the next chair of the Federal Reserve, as investors weighed how aggressively he might move to cut interest rates, according to Bloomberg.

The dollar also eased from earlier gains following Trump’s announcement on Truth Social. Earlier market moves indicated that traders were scaling back expectations of sharp rate cuts under Warsh, who during his time as a Fed policymaker from 2006 to 2011 frequently stressed the risks of inflation even as others focused on boosting growth and employment during the financial crisis.

The decision brings an end to months of speculation over the future leadership of the central bank, after Trump repeatedly criticised current Fed Chair Jerome Powell for not lowering interest rates. Powell’s term is set to expire in May.

Warsh had previously been a leading contender for the Federal Reserve chairmanship in 2017, before President Trump ultimately chose Jerome Powell for the role. Trump has since said he received poor advice in making that decision.

Warsh holds degrees from Stanford University and Harvard Law School. He is married to Jane Lauder, daughter of cosmetics heir Ronald Lauder, a prominent Republican donor, as per AP.

He became the youngest member of the Federal Reserve’s seven-person board at the age of 35, serving from 2006 to 2011. Earlier in his career, he worked as an economic adviser in George W. Bush’s administration and was also an investment banker at Morgan Stanley.

Wall Street futures slipped on Friday after reports emerged that President Donald Trump was set to nominate former Federal Reserve official Kevin Warsh as the next chair of the US central bank, according to AP.

Futures linked to the S&P 500 and the Dow Jones Industrial Average were both down 0.5% ahead of the market open, while Nasdaq futures fell 0.6%.

The US dollar steadied overnight, while precious metals, which had been hitting record highs almost daily, came under heavy selling pressure. Gold dropped 3.9% to $5,144 an ounce, and silver slid more than 13%, falling below the $100-an-ounce mark.

In 2017, there was a contest between Jerome Powell and Kevin Warsh about who would be the next US Federal Reserve Chairman. US President Donald Trump ultimately picked Powell, according to a Wall Street Journal (WSJ) report.

Warsh's name popping up on Trump's finalist list this year made him the only candidate to appear twice. Jerome Powell's term is set to end in May 2026.

US Federal Reserve Chairman Jerome Powell, during his January 2026 FOMC media address, offered a few key pieces of advice for his successor after the US central bank decided to keep the interest rates steady.

“One is, stay out of elected politics. Don't get pulled into elected politics. Don't do it,” said Powell in his speech. Avoiding politics, though, doesn't mean avoiding elected officials, he clarified.

“Our window into democratic accountability is Congress, and it's not a passive burden for us to go to Congress and talk to people, it's an affirmative regular obligation,” said Powell. “If you want democratic legitimacy, you earn it by your interactions with our elected overseers.”

Powell also said that it is easy to criticise government institutions in so many ways. He also highlighted that not everybody's perfect, but there isn't a better cadre of professionals more dedicated to the public well-being than work at the Fed.

“And the last thing is it's easy to criticise government institutions in so many ways. I will tell whoever it is [that] you're about to meet the most qualified group of people you not only have ever worked with [but] you will ever work with, and when you meet Fed staff. And not everybody's perfect, but there isn't a better cadre of professionals more dedicated to the public well-being than work at the Fed,” said Powell in his media address.

US President Donald Trump announced that Kevin Warsh is the next candidate who is set to replace Chairman Jerome Powell as the veteran's designated term comes to an end this year.

In his announcement, Trump also said that Kevin Warsh was the youngest US Fed Governor at the age of 35 back in 2006, and he remained in his role until 2011.

Donald Trump also said that Kevin Warsh, during his stint as a Fed Governor, acted as the Federal Reserve's Representative to the Group of Twenty (G-20), and as the Board's Emissary to the Emerging and Advanced Economies in Asia.

“In addition, he was Administrative Governor, managing and overseeing the Board's operations, personnel, and financial performance,” Trump said.

Kevin Warsh, age 55, is a former Federal Reserve Governor who served on the Federal Reserve's Board of Governors from 2006 to 2011. Warsh is a close ally of US President Donald Trump and has advised the president on economic policy.

Currently, Warsh is serving as the Shepard Family Distinguished Visiting Fellow in Economics at the Hoover Institution and also as a Lecturer at the Stanford Graduate School of Business.

“He is a Partner of Stanley Druckenmiller at Duquesne Family Office LLC. Kevin received his A.B. from Stanford University, and J.D. from Harvard Law School. He has conducted extensive research in the field of Economics and Finance. Kevin issued an Independent Report to the Bank of England proposing reforms in the conduct of Monetary Policy in the United Kingdom,” said Donald Trump in his recent post on Truth Social.

US President Doanld Trump in his Truth Social announcment said that he has known Kevin Warsh for a long time and he thinks there is no doubt that that new candidate will be one of the greatest Chairman of the US Federal Reserve.

“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. Congratulations Kevin!” said Trump in his post on Truth Social.

“I am pleased to announce that I am nominating Kevin Warsh to be the CHAIRMAN OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM,” said Donald Trump in his recent post on Truth Social.

US President Donald Trump picks former Kevin Warsh as the next US Federal Reserve Chairman!

Several candidate names are reportedly under consideration as US President Donald Trump is set to announce the successor to Chair Jerome Powell as his designated terms are set to come to an end.

According to a recent Reuters report, these candidates include White House National Economic Director Kevin Hassett, former Fed governor Kevin Warsh, current Fed governor Christopher Waller, and BlackRock executive Rick Rieder.

After Trump's nominee announcement, the candidate's recommendation will be sent to the US Senate for confirmation.

US President Donald Trump, on Thursday, said that he will be announcing the new Federal Reserve Chairman candidate's name on Friday, 30 January 2026, amid his repeated pleas asking for further rate cuts in the US economy.

“I’ll be announcing the Fed chair tomorrow morning,” Trump said at the Kennedy Centre on Thursday, 29 January 2026, reported the news agency Reuters.