Wall Street Breakfast Trump picks Kevin Warsh as next Fed chief
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Jan 30, 2026 A news-driven rundown of Kevin Warsh’s selection to lead the Federal Reserve and his Fed and finance background. Quick coverage of market reactions, shifting yields, and rate-cut expectations. A debate on whether Warsh will be hawkish or follow political pressure. Analysts weigh in on his views about QE and Fed independence.
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Market Reaction Was Lukewarm
- Markets remained sanguine after Trump picked Kevin Warsh as Fed chair despite initial stock weakness.
- Futures still price two quarter-point cuts this year, showing uncertainty about Warsh's stance.
Warsh's Fed And Crisis Experience
- Warsh served on the Fed's Board from 2006 to 2011 and acted as Bernanke's liaison during the financial crisis.
- If confirmed he would replace Jay Powell when Powell's term ends in May.
Warsh's Hawkish Past Meets Supply-Side Tilt
- Kevin Warsh has a hawkish reputation from opposing QE but aligns with supply-side priorities like investment and productivity.
- Analysts say his past hawkishness could help persuade a skeptical FOMC to deliver politically desired rate cuts.