President Trump has made a bold move, naming Kevin Warsh as his choice to lead the Federal Reserve, setting the stage for a potential shift in monetary policy.

Trump announced on Friday morning via Truth Social that he will nominate Warsh, 55, to replace current Fed Chairman Jerome Powell, 72, whose tenure ends in May. The decision follows a report by The Post’s Charles Gasparino, who noted hours earlier that Trump had finalized Warsh as his pick after a Thursday meeting. Trump also considered other candidates, including BlackRock executive Rick Rieder and Fed governor Christopher Waller, before settling on Warsh, a former Morgan Stanley executive who served on the Fed’s Board of Governors from 2006 to 2011.

Warsh’s Return to the Fed Spotlight

Supporters contend that Warsh’s selection marks a significant comeback, especially since Trump passed him over for the role in 2017 and later regretted his choice of Powell, the New York Post reported. This time, Warsh has aligned more closely with Trump’s views in recent months, particularly on economic policy.

Trump didn’t hold back in his praise for Warsh, signaling high expectations for the nominee’s future at the central bank. “He is ‘central casting,’ and he will never let you down,” Trump declared on Truth Social. It’s a glowing endorsement, but one that raises questions about whether such personal loyalty could blur the lines of the Fed’s independence.

Warsh’s nomination, however, must navigate Senate confirmation amid complications tied to a Justice Department probe involving the Fed. Warsh’s recent pivot on interest rates—once an inflation hawk, now advocating for lower borrowing costs—has reassured some in Trump’s circle. Yet it’s precisely this shift that has Fed watchers on edge, concerned about political influence on monetary decisions.

Concerns Over Fed Independence Loom

The Fed’s current stance, holding rates steady this week after three cuts last year, remains a sore point for Trump, who wants borrowing costs slashed further. Inflation stubbornly hovers above the Fed’s 2% target, complicating the path forward.

Trump’s frustration with Powell has been no secret, especially after the Fed’s latest rate decision. His sharp critique on Thursday, labeling Powell a “moron,” underscores the tension between the White House and the central bank. Such rhetoric only heightens concerns about what a Warsh-led Fed might face under similar pressure.

Warsh’s background offers a mix of Wall Street savvy and policy experience, having earned a reputation as Ben Bernanke’s “Wall Street whisperer” during the 2008 financial crisis. After leaving the Fed in 2011, he joined Stanford University’s Hoover Institution as a visiting fellow and lectured at its Graduate School of Business. Investors view him as a more conventional choice compared to other contenders Trump considered.

Senate Confirmation Faces Potential Roadblocks

The road to confirmation won’t be a cakewalk, as an ongoing Justice Department investigation into the Fed, tied to Powell’s June 2025 congressional testimony about a building project, casts a shadow. Subpoenas were issued earlier this month, and some Republican lawmakers have vowed to block nominations until the matter is resolved.

Sen. Thom Tillis of North Carolina, a key committee member, reiterated his stance on X Friday morning, making his position crystal clear. “I will oppose the confirmation of any Federal Reserve nominee, including for the position of Chairman, until the DOJ’s inquiry into Chairman Powell is fully and transparently resolved,” he stated. This could stall Warsh’s nomination, even if his qualifications aren’t in dispute.

Powell himself offered pointed advice to his potential successor during a press conference following the Fed’s recent rate decision. His words were a subtle jab at the political heat surrounding the role, urging the next chair to maintain distance from partisan battles.

Trump’s Vision for Economic Policy

Trump’s other contenders, including Rieder and Waller, were acknowledged as strong options, with the president noting they all had bright futures ahead. He also praised National Economic Council Director Kevin Hassett, though he didn’t want to pull him from his White House role.

Warsh’s past as a Fed governor and his Wall Street tenure could bring a steady hand to the role, but his evolving views on rates are a wildcard. Will he prioritize the Fed’s mandate over political expectations? That’s the million-dollar question as borrowing costs and inflation remain hot-button issues.

Ultimately, Warsh’s potential leadership at the Fed signals a shift that could reshape monetary policy in ways Trump has long advocated. While his track record suggests competence, the specter of political influence and Senate gridlock looms large. The coming weeks will test whether this “comeback” story ends in triumph or deadlock.