Trump formally nominated Kevin Warsh to be chairman of the US Federal Reserve Board
US President Donald Trump has officially nominated economist Kevin Warsh to be the next Fed Chairman. The nomination has already been sent to the Senate, according to the White House website. If Worsh is confirmed, he will succeed Jerome Powell, whose term expires in May, and will hold the position for four years.
Republican Sen. Thom Tillis has previously said he would block a vote in the upper chamber until the criminal investigation intoPowell over the $2.5 billion renovation of the Fed's headquarters is dropped. Tillis' position could prevent Worsh's nomination from being brought before the full Senate, CNBC noted .
What is Kevin Warsh known for
Warsh had already served at the U.S. Federal Reserve as a member of the Board of Governors from 2006 to 2011, and played an important - albeit non-public - role in the Wall Street bailout during the 2008-2009 financial crisis, The Wall Street Journal wrote.
And in 2017, he had a chance to head the regulator - Trump also considered his candidacy at the time, but eventually nominated Powell. Subsequently, the US president was disappointed in his choice and often criticized the Fed and Powell in particular for not cutting rates aggressively enough.
Warsh has recently aligned himself with Trump's views: while on the Fed's board of governors, he became known as a proponent of tighter monetary policy and has recently urged the regulator to accelerate easing, WSJ noted. However, his experience and reputation suggest he is likely to maintain a hard line in the event of a sharp rise in inflationary pressures, Wealth Club strategist Suzanne Streeter told Reuters.
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