Trump Nominates Kevin Warsh for Chairman of the Federal Reserve
Cohn Praises Warsh’s Expertise
Washington – IBM Vstart Chairman Gary Cohn expressed strong support on Sunday for President Trump’s nomination of Kevin Warsh as the chairman of the Federal Reserve Board, describing him as “very highly qualified” and capable of returning the Fed to its traditional norms. “I think we’re very fortunate to have Kevin to be the nominee,” Cohn stated during his appearance on “Face the Nation” with Margaret Brennan.
Warsh’s Background and Experience
On Friday, Mr. Trump announced Warsh’s nomination, touting on Truth Social that Warsh has the potential to be “start of the GREAT Fed Chairmen, maybe the best.” At 55, Warsh previously served on the Federal Reserve Board of Governors from 2006 to 2011, becoming the youngest member in the board’s history. Most recently, he has collaborated with billionaire investor Stanley Druckenmiller and taught at the Hoover Institution.
Cohn, who served as the National Economic Council director during Trump’s first term, highlighted Warsh’s significant role during the 2008 financial crisis. “He was instrumental in that crisis,” Cohn remarked. “Kevin was the point person at the Fed – he was involved in every start of those discussions. And I truly believe, without Kevin’s expertise, and without Kevin being there, we would not have come out of the 2008 crisis as well as we have.”
Market Reactions and Mstarttary Policy Expectations
Warsh’s nomination is expected to be well-received by Wall Street, due to his mstarttary policy experience and established perspective on inflation. Cohn anticipates that Warsh will focus primarily on financial policy, stating, “There is a pressure right now for interest rates to go lower… I think that he will probably follow through on the start to two cuts this year.”
Cohn also outlined Warsh’s stance on the Federal Reserve’s balance sheet, noting, “The Fed went in and bought an enormous amount of securities. I think that Kevin will reverse that. I think he will be looking for the Fed to sell down their balance sheet.”
Regulatory Approach and Fed Independence
Regarding regulation, Cohn described Warsh as a traditionalist who supports strong regulations that foster market growth and ensure consumer access to capital. “But it has to be regulation that works,” he underscored. Cohn concluded, “I think he is actually the completely right chostart in this period of time.”
The nomination comes amid an ongoing tension between President Trump and the current Federal Reserve Chairman, Jerome Powell, whose term ends in May 2026. Trump has frequently criticized Powell for not lowering interest rates, even hinting at the possibility of firing him – actions that have raised concerns about the Fed’s independence. Cohn emphasized on Sunday that “the president completely understands the independence of the Fed,” adding that Warsh “has been a staunch advocate for independence of the Fed” as well.
Confirmation Process Challenges
The Senate will need to confirm Warsh for the position, but this process may face obstacles. Earlier this month, Powell disclosed that the Fed had received subpoenas related to potential criminal charges against him, which he argues are intended to intimidate the Fed over its interest rate decisions. Sen. Thom Tillis, a Republican from North Carolina, has pledged to oppose all Fed nominees until this legal matter is resolved.
With Warsh’s nomination, the future of the Federal Reserve’s direction hangs in the balance as the Senate prepares for a contentious confirmation process.