Trump Picks Kevin Warsh as Next Fed Chair
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If confirmed, Trump’s Fed-chair nominee would face several treacherous balancing acts.
Kevin Warsh is not permanently hawkish on monetary policy despite his reputation for a conservative stance on rates, according to Stanley Druckenmiller, the billionaire investor and longtime mentor of Donald Trump’s Federal Reserve chair nominee.
Warsh has recently advocated for lower rates, but a smaller Fed balance sheet.
Debt and deficits will put Kevin Warsh under great pressure to keep interest rates low and rely on short term borrowing. But long term that will have serious consequences.
Kevin Warsh’s long-held desire to slash the Federal Reserve’s balance sheet is likely to clash with Donald Trump’s relentless calls for the central bank to depress long-term borrowing costs, big fund managers have said.
Mr. Warsh is known as a consensus builder, skills he will need if he is to head the Federal Reserve when President Trump is demanding rock-bottom rates.
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Unsure if Kevin Warsh will be as dovish as Trump wants in 2027: Morgan Stanley's Andrew Slimmon
Andrew Slimmon, Morgan Stanley senior portfolio management, joins 'The Exchange' to discuss Trump's nomination to head the Federal Reserve, Kevin Warsh.