Overview
- President Donald Trump announced Kevin Warsh, a former Federal Reserve governor, as his nominee to lead the central bank, with the term of Jerome Powell ending in May.
- The nomination requires Senate approval, and Republican Senator Thom Tillis has said he will not support any nominee while the DOJ procedure against Powell remains active.
- The Fed kept its benchmark rate at 3.50%–3.75% at its January meeting and signaled no rush to ease, with markets now pricing the next possible cut no earlier than June, according to CME FedWatch.
- Two FOMC voters—Stephen Miran and Christopher Waller—dissented in favor of an additional quarter‑point cut, underscoring divisions over the pace of easing.
- Powell has defended the central bank’s independence and disclosed on January 11 a DOJ action that could lead to charges over renovation costs, which he called an attempt to intimidate the Fed.