"Trump said to be preparing to tap Kevin Warsh as next Fed chair"

Trump: "Fed chair announcement on the 30th"…signals successor pick

FT: "Preparing to nominate former governor Kevin Warsh"…citing sources

Warsh frontrunner talk lifts dollar, pushes up U.S. Treasury yields

As U.S. President Donald Trump said he would announce the next chair of the Federal Reserve (Fed) on the 30th (local time), former Fed Governor Kevin Warsh is emerging as a leading contender.

The Financial Times (FT) reported, citing three people familiar with the matter, that Trump is preparing to nominate Warsh as successor to Fed Chair Jerome Powell.

Bloomberg News had previously reported that the Trump administration was making preparations that could allow it to nominate Warsh as the next Fed chair.

However, sources who requested anonymity told Bloomberg that "the selection has not been finalized until President Trump makes an official announcement."

The White House and Warsh did not immediately respond to requests for comment.

Trump attended the premiere of the documentary film 'Melania' at the Trump-Kennedy Center in Washington, D.C., on the 29th and said, "I will announce the Fed chair tomorrow morning."

He described the new Fed chair candidate as an "outstanding" person and a "highly respected figure," adding, "It will be someone everyone in finance knows and it will be a very good choice."

According to The Wall Street Journal (WSJ), Bloomberg and Reuters, Warsh was said to have met Trump at the White House on the 29th.

WSJ reported that Trump had said he would announce his pick for Fed chair next week, but moved up the timing by a day to the 30th after meeting with Warsh.

As news spread that Warsh is the frontrunner, the dollar rose and U.S. Treasury yields also climbed.

The U.S. Dollar Index (DXY), which measures the dollar against a basket of six major currencies including the euro, stood at 96.529 as of 2:12 p.m. Korea time on the 30th, above the previous close of 96.283.

On the prediction-betting platform Polymarket, Warsh’s chances of being chosen as the next Fed chair were put at 93%.

Trump interviewed Warsh as well when selecting a Fed chair in 2017 during his first term, but ultimately chose Powell.

Trump has repeatedly and publicly criticized Powell while calling for deep rate cuts. Powell’s term ends in May.

In 2020, Trump told Warsh, "I wonder why you didn’t show a stronger desire for the Fed chair job back in 2017. It’s been reported that he said it would have been better for him if he had chosen Warsh.

Warsh has argued that the Fed’s framework needs to be changed at the level of a 'regime change.'

A graduate of Stanford University and Harvard Law School, he is seen as having extensive networks across Wall Street and Washington policymakers.

He previously served as an executive at Morgan Stanley and joined the Fed in 2006 as the youngest governor in history (2006–2011). According to Coupang’s website, he has also served as a member of Coupang’s board of directors since October 2019.

Kevin Hassett, director of the White House National Economic Council (NEC) and a close Trump ally, has also been floated as a candidate for the next Fed chair, but his odds are seen as diminishing as Trump has indicated he wants to keep Hassett at the NEC.

Yoo Ji-hee, Hankyung.com reporter keephee@hankyung.com