Meet Trump's next Fed Chair Kevin Warsh: He wants a back-seat central bank, a more bullish monetary policy, and for his dog to live a really long time | Fortune

"Warsh was among the frontrunners to replace current chairman Jerome Powell for many months, particularly after Trump said he'd been impressed by the "two Kevins" (Warsh and Kevin Hassett, director of the United States National Economic Council) during the interview process. Trump confirmed Warsh's nomination to lead the central bank on Truth Social on Friday, writing that he had "known Kevin for a long period of time, and [had] no doubt that he will go down as one of the GREAT Fed Chairmen [sic], maybe the best.""

"Warsh has the credentials the market likes to see atop the central bank: He knows the inner workings of the central bank courtesy of a stint on the Board of Governors from 2006 until 2011, and he was a key player in the inner circle of then-Chairman Ben Bernanke as the nation navigated a financial crisis."

"He knows Washington, having been brought into the fold by President George Bush in 2002, when he served as special assistant to the president for economic policy and as executive secretary at the National Economic Council. He's also got the private sector experience Trump favors. (Scott Bessent, pre-Treasury secretary, was CEO of global hedge fund Key Square Capital Management). Between 1995 and 2002, Warsh worked for Morgan Stanley, his final role being vice president and executive director."

"But what's known of Warsh outside of his CV? His plans for the Fed echo the rhetoric Bessent has been pushing for a while (the duo occupied in the same Wall Street circle for years): The Fed should be taking a more back-seat approach. Investors may not like this early on; they've grown used to poring over the many updates on the Fed's thinking courtesy of press conferences, public appearances, the Beige Book, and tools like the dotplot."

Kevin Warsh was named as President Trump's nominee for Federal Reserve chairman. Warsh served on the Fed's Board of Governors from 2006 to 2011 and worked closely with Chairman Ben Bernanke during the financial crisis. He previously held roles in the White House as special assistant for economic policy and executive secretary at the National Economic Council, and he spent years at Morgan Stanley in senior positions. Warsh blends public-sector experience with private-sector credentials preferred by the administration. Warsh favors a more back-seat Fed approach, indicating potential reductions in communication and transparency that investors may initially resist.

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