Fed vs. inflation

Trump nominates Kevin Warsh as new Fed chief

Former Fed governor Kevin Warsh is nominated to be the new head of the Federal Reserve. Donald Trump writes on Truth Social.

Trump praises Warsh in a post and predicts that he will go down in history as “one of the great Fed chairs, maybe the best”. “He is cut and ready for the role and will never disappoint”, writes Trump.

Warsh is expected to succeed Jerome Powell, whose term expires in May, provided that the Senate gives him its confirmation.

Republican senator says no to the election of Kevin Warsh

Republican senator Thom Tillis will vote no on the proposal that Kevin Warsh should succeed Jerome Powell as head of the Federal Reserve in May. Bloomberg reports.

Tillis is critical of the controversial criminal investigation that has been opened against Powell and has demanded that it be closed. He sees the investigation as a threat to the independence of the central bank.

“My position has not changed,” writes Tillis on X.

Experts on Warsh as new Fed chief: He is a hawk

The market is reacting positively to Donald Trump nominating former Fed Governor Kevin Warsh as new head of the Federal Reserve.

– Warsh is on the “hawkish” side and a better choice from the market’s perspective than some of the other candidates, says Dane Cekov, senior strategist at SB1 Markets, to Dagens Næringsliv.

Warsh advocates a tighter monetary policy and prioritizes inflation control over expansionary stimulus.

“Positive with a new Fed chief who seems to prioritize inflation risks,” writes SEB’s senior economist Robert Bergquist on X.

Allianz advisor Mohamed El-Erian writes this on X:

“He has a strong mix of deep expertise, broad experience and sharp communication skills”