Trump plans to name Kevin Warsh as next Fed chair: sources

New York Post | January 30, 2026 at 09:34 AM UTC

Bearish 88% Confidence Majority Agreement

Key Points

Warsh, 55, is considered a hawk on interest rates and has been a critic of Powell for monetary policies during the Biden years that contributed to inflation
Trump previously considered Warsh for the Fed chair position eight years ago before selecting Jerome Powell, whose term ends in May
The decision shifted away from earlier frontrunner Kevin Hassett after top CEOs reportedly criticized him as too much of a 'cheerleader for MAGA economics' creating market instability

AI Summary

Summary: Trump to Name Kevin Warsh as Next Federal Reserve Chair

Key Development:

President Trump plans to announce Friday that Kevin Warsh, former Federal Reserve governor and Stanford University professor, will replace Jerome Powell as Fed chair when Powell's term ends in May. Trump extended the offer Thursday evening after a meeting, and Warsh accepted.

Candidates Considered:

Kevin Warsh (55): Selected finalist, previously considered for the role eight years ago
Rick Reider: BlackRock executive who was a top contender but informed Thursday he wouldn't receive the appointment
Kevin Hassett: National Economic Council director, previously viewed as the front-runner weeks ago but lost favor after top CEOs criticized him as "too much of a cheerleader for MAGA economics"
Christopher Waller: Fed Governor with reduced odds

Market Implications:

Warsh is characterized as a hawk on interest rates, which should alleviate concerns about Fed independence. However, he shares Trump's criticism of Powell for "printing money during the Biden years" and contributing to inflation. This hawkish stance may signal a more conservative monetary policy approach ahead.

Background Context:

The selection comes amid ongoing tension between Trump and Powell, with Trump publicly advocating for aggressive rate cuts despite inflation concerns. Powell recently advised his successor to "stay out of elected politics," highlighting the strain on Fed independence.

Important Caveat:

White House officials cautioned that Trump could change his mind at the last minute, reflecting the unpredictability of the decision-making process.

The announcement is expected Friday morning, moved up from an initially planned next-week timeline.

Model Analysis Breakdown

Model	Sentiment	Confidence
GPT-5-mini	Bearish	80%
Reasoning: Warsh is described as a monetary hawk and critical of prior easy-money policies, so his appointment would raise expectations for tighter policy and higher rates—negative for equities and supportive of yields and the dollar.
Claude 4.5 Haiku	Neutral	90%
Reasoning: Warsh is considered a hawkish rate advocate who respects Fed independence, which could reassure markets about inflation control, but his criticism of Powell's monetary policy and Trump's history of Fed conflict create uncertainty about future policy direction.
Gemini 2.5 Flash	Bearish	95%
Reasoning: The appointment of Kevin Warsh, described as a 'hawk on interest rates' and a critic of past accommodative policies, signals a potential shift towards tighter monetary policy, which is generally bearish for equities due to higher borrowing costs and slower economic growth prospects.
Consensus	Bearish	88%

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Article Details

News ID: 3501194
Source: New York Post
Analyzed: 25 days ago

Sentiment Confidence

Average Confidence 88%

High confidence in sentiment