President Trump has nominated Stanford alumnus and Hoover Fellow Kevin Warsh ’92 to serve as the next chair of the Federal Reserve.
A graduate of Harvard Law School, Warsh joined the Hoover Institution as a Shepard Family Distinguished Visiting Fellow in Economics in 2011. He began his financial career at Morgan Stanley, where he ascended to the role of Executive Director of the mergers and acquisitions department. He then served on several economic advisory boards under President George W. Bush, before being appointed as the youngest-ever member of the Federal Reserve Board of Governors.
Warsh declined to comment.
In a Truth Social post, Trump lauded Warsh’s experience, describing him as someone who “will never let you down.”
“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,” Trump wrote
Warsh’s nomination comes amid historic tensions between Trump and current Federal Reserve Chair Jerome Powell. Trump has repeatedly attacked Powell, whose term ends on May 15, for refusing to lower interest rates, labeling him as “incompetent,” “crooked” and “a real stiff.”
On January 11, Powell issued a public statement decrying the Department of Justice’s newly-launched investigation into the Fed’s renovation of historic office buildings. Powell’s statement framed the investigation as an attack on institutional autonomy.
“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be directed by political pressure or intimidation,” he said.
Despite serving on its board, Warsh has been a vocal critic of the Federal Reserve. He has described “inflation as a choice” and criticized the Fed for overreach in shaping what he calls the “Great Inflation” of the past half-decade.
Although he has never served directly under the president, Warsh has ties to Trump. Warsh’s father-in-law, businessman Ronald Lauder, has been credited with inspiring Trump to acquire Greenland. Particularly in recent months, Warsh has also stressed the importance of lowering interest rates, and has criticized Powell for having “failed” in his job as Fed Chair — views that align with Trump’s statements.
Warsh’s nomination has drawn mixed reactions from experts. Popular economist Mohamed El-Erian has praised Warsh, referencing his “strong mix of deep expertise, broad experience, and sharp communication skills.” Meanwhile, Paul Krugman, a Professor at the Graduate Center of the City University of New York and a former New York Times columnist, critiqued Warsh, calling him “an effective bullsh–er” and his nomination “a humiliating day for the Federal Reserve.” Other economists have criticized Warsh for flipping his long-held view of high interest rates to now call for lower interest rates under the Trump administration.
The Daily has reached out to the University for comment.