Former Fed Governor Kevin Warsh emerges as front-runner for Trump's new Fed Chair

As speculation grows over who will succeed Jerome Powell as chair of the U.S. Federal Reserve, former Fed Gov. Kevin Warsh has emerged as a front-runner. Warsh also serves as a member of the board of directors at Korean e-commerce giant Coupang.

Kevin Warsh, Fellow in Economics at the Hoover Institution and lecturer at the Stanford Graduate School of Business, speaks during the Sohn Investment Conference in New York City on May 8, 2017. [REUTERS/YONHAP]

As speculation grows over who will succeed Jerome Powell as chair of the U.S. Federal Reserve, former Fed Gov. Kevin Warsh has emerged as a front-runner. Warsh also serves as a member of the board of directors at Korean e-commerce giant Coupang.

U.S. President Donald Trump said Thursday he will announce the next Fed chair nominee on Friday morning during remarks at a documentary screening for “Melania” at the Trump-Kennedy Center in Washington.

“It’s going to be, somebody that is very respected, somebody that’s known to everybody in the financial world. And I think it’s going to be a very good choice. I hope so,” Trump said.

Citing sources familiar with the matter, Bloomberg reported that Trump is preparing to nominate Warsh as the next Fed chair. Reuters also noted that Warsh met directly with Trump at the White House late Thursday night, suggesting a final round of vetting before the announcement.

The final short list reportedly includes three more candidates: Kevin Hassett, director of the White House National Economic Council; Christopher Waller, Fed governor; and Rick Rieder, chief investment officer at financial firm BlackRock. While all four are seen as critical of current interest rate levels, they differ in how quickly or aggressively they would ease monetary policy.

Federal Reserve Chair Jerome Powell speaks during a news conference at the Federal Reserve Board Building in Washington on Jan. 28. [AP/YONHAP]

On prediction market platform Polymarket, Warsh’s odds of nomination surged to 96 percent at one point on Friday. Over the past month, Warsh and Hassett have jostled for the top spot. However, with Trump, decisions are often fluid until the official announcement is made, analysts noted, recalling that even the nomination of U.S. Treasury Secretary Scott Bessent shifted multiple times before the announcement.

Born in New York in 1970, Warsh has followed a classic elite trajectory. He earned a degree in public policy from Stanford University, followed by law and business degrees from Harvard. After starting his career at Morgan Stanley in 1995, he worked for the President George W. Bush administration in 2002 as special assistant to the president for economic policy and executive secretary at the White House National Economic Council.

U.S. President Donald Trump, left, and first lady Melania Trump arrive for the premiere of her movie "Melania" at The Trump-Kennedy Center in Washington on Jan. 29. [AP/YONHAP]

In 2006, at age 35, he became the youngest-ever Fed Governor. After leaving the Fed in 2011, he joined Stanford University’s Hoover Institution and became a board member at Coupang in 2019.

Trump is reportedly drawn to Warsh for his ability to navigate the Fed’s internal decision-making structure and his preference for rate cuts based on clear data and process. While not viewed as aggressively dovish, Warsh is seen as someone who would prioritize order and credibility — key to balancing market trust with the Fed’s independence.

Powell’s term ends in May. The next Fed chair must be confirmed by a Senate vote. Since taking office in January last year, Trump has openly pressured the Fed to lower interest rates, casting aside the traditional norm of central bank independence. Despite this, Powell proceeded with three rate cuts totaling 0.75 percentage points over the past year, bringing the benchmark rate to 3.75 percent.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom. BY KIM KI-HWAN [shin.minhee@joongang.co.kr]