The Trump administration is reportedly preparing to nominate former Fed governor Kevin Warsh as the next Fed chairman. According to people familiar with the matter, former Federal Reserve Board Governor Kevin. Warsh met with President Trump at the White House on Thursday. He was on Trump's final list of candidates to consider. Other shortlisted candidates include National Economic Council Director Kevin Hassett, Federal Reserve Governor Christopher Waller and BlackRock executive Rick Reed.
Earlier, U.S. President Donald Trump said he would announce the nominee for chairman of the Federal Reserve on Friday morning local time (Friday evening Beijing time), marking the end of a months-long selection process that triggered investor speculation about the future of the world's most influential central bank. Asked at an event Thursday night when he would announce a decision, Trump responded: "Tomorrow morning."
Trump also said the selection "won't surprise people too much." "A lot of people thought this guy should have been there years ago," Trump said of the proposed nominee. Trump speaks to reporters at the Kennedy Center.
Information shows that Kevin Maxwell Warsh (Kevin Maxwell Warsh, born April 13, 1970), was born in Albany, New York, USA. He is an American financier and bank executive who served as a director of the Federal Reserve Board from 2006 to 2011. Kevin Warsh has called for institutional reforms at the Fed and hopes to reduce the size of the Fed's balance sheet, a goal that seems to run counter to Trump's stance toward looser monetary policy. Some analysts say Warsh has more credibility in the central bank community, while Hassett is considered more likely to take orders from Trump.
Warsh has previously been highly critical of the Fed's aggressive balance sheet operations over the past few years, believing that quantitative easing policies have deviated from the central bank's core responsibilities. Wash currently serves as a partner at the Duquesne family office of Stan Druckenmiller and is a distinguished visiting scholar at the Hoover Institution and a lecturer at the Stanford Graduate School of Business. This experience spanning academia, regulatory agencies and the investment community has given him a deep understanding of financial markets and monetary policy.
Kevin Warsh has been strongly critical of the Federal Reserve in recent years. His main views are as follows:
Inflation is a choice(Inflation is a choice): Inflation is not caused by supply chains, geopolitics or external factors, but the result of policy mistakes by the Federal Reserve. The Fed deviated from its core mission of price stability and was overly easing, leading to an explosion of inflation. It evaluated the record under Powell's leadership as an "unwise choice."
The Fed’s functions have exceeded their boundaries: Criticizes the Federal Reserve for transforming from the "lender of last resort" to the "first intervener" and over-expanding its balance sheet (as high as $7 trillion), distorting the market and fueling fiscal deficits. It is advocated that the Federal Reserve return to its core responsibilities and stop getting involved in areas such as fiscal policy and climate change.
Balance sheet reduction and interest rate cuts in parallel: Supports significant balance sheet reduction (quantitative tightening) and reduction of liquidity to curb inflation, but also believes that this can create space for lower short-term interest rates and support lower interest rates to benefit households, small and medium-sized enterprises and the real economy. We are optimistic about the non-inflationary growth brought about by the explosion of AI and productivity.
Reform rather than revolution: Calls for the Federal Reserve to "restoration", restore discipline and independence, avoid data dependence and excessive forward guidance, and emphasize more rule-based policies.