U.S. President Donald Trump announced on 30 January 2026 his nomination of Kevin Warsh, a former Federal Reserve governor, to lead the central bank. The move, pending Senate confirmation, has drawn global attention due to its potential impact on Asia’s financial markets and cross-border investment flows.
In a post on Truth Social, Trump praised Warsh as a candidate who will "never let you down," emphasizing their longstanding relationship. Warsh, 55, previously served as a Fed governor from 2006 to 2011 and has been critical of current Chair Jerome Powell’s management of interest rates and balance sheet policies.
The nomination follows months of public speculation, with Warsh competing against figures like White House economic advisor Kevin Hassett and Fed Governor Christopher Waller. Analysts note that Trump’s persistent efforts to influence Fed policy—including a 2025 appointment of adviser Stephen Miran and an ongoing Supreme Court battle to remove Fed Governor Lisa Cook—raise questions about central bank independence.
Asian markets are closely monitoring the situation, as the Fed’s decisions directly affect regional trade dynamics and currency valuations. Warsh’s historical skepticism of prolonged low-interest-rate policies could signal tighter monetary conditions ahead, impacting overseas investors in emerging Asian economies.
Powell, whose term as chair expires this year, has hinted he might remain on the Fed’s board to safeguard its autonomy amid political pressures. The Senate confirmation process is expected to intensify debates over the Fed’s role in stabilizing global finance.
