Trump nominates Kevin Warsh as next Fed chair to succeed Powell

▲ This file photo, released by the Associated Press, shows Kevin Warsh, visiting fellow at the Hoover Institution, speaking at the Council on Foreign Relations in a panel discussion in New York on Nov. 28, 2011. (Yonhap)

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Trump nominates Kevin Warsh as next Fed chair to succeed Powell

By Song Sang-ho

WASHINGTON, Jan. 30 (Yonhap) -- U.S. President Donald Trump on Friday tapped Kevin Warsh, a former Federal Reserve official, as the next Fed chair to succeed Jerome Powell, amid his repeated calls for the central bank to lower borrowing costs.

Trump announced his nomination of Warsh, who has recently voiced his support for cutting interest rates, as Powell's term as the Fed chair ends in May, with his stint as a member of the Board of Governors set to expire in January 2028.

"I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best," Trump wrote on Truth Social. "On top of everything else, he is "central casting," and he will never let you down."

The nomination came after Trump repeatedly lambasted Powell for being "too late" in bringing down interests rates -- criticism that has stoked concerns about the central bank's independence.

In an unusual video statement earlier this month, Powell disclosed that he was the subject of a probe concerning his congressional testimony last year and the Fed's building renovation project, casting it as a consequence of the bank setting rates based on its assessment "rather than following the preferences of the president."

Warsh currently serves as the Shepard Family Distinguished Visiting Fellow in Economics at the Hoover Institution, and lecturer at the Stanford Graduate School of Business. He served as a Fed governor from 2006 until 2011, Trump said in the post.

Warsh received a bachelor's degree from Stanford University, and J.D. from Harvard Law School.

During the latest rate-setting meeting on Wednesday, the Fed held its key rate steady, leaving it at the 3.5-3.75 percent range. Following three straight reductions since September, the pause put the gap between the key rates of South Korea and the United States at up to 1.25 percentage points.

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