President Donald Trump on Wednesday formally nominated former Federal Reserve Governor Kevin Warsh to chair the U.S. central bank, advancing his push to install a Fed leader more open to cutting interest rates.
If confirmed, Warsh would succeed Jerome Powell when Powell’s term as chair ends on May 15 and fill the board seat currently held by Stephen Miran, another Trump appointee who favors lower rates. But Warsh faces a difficult path to confirmation. Sen. Thom Tillis (R-NC) has vowed to block any Fed nominee while a Justice Department probe tied to Powell, which Tillis argues endangers the “independence and credibility” of the central bank, remains open.
Even if confirmed, Warsh could struggle to win support for cuts with inflation remaining stubbornly above the Fed’s target rate and rising oil prices.
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