Trump prepares Friday announcement of next Federal Reserve chair after White House meeting with Kevin Warsh

A high-stakes transition for the central bank

President Donald Trump said he would announce his choice for the next chair of the Federal Reserve on Friday, following a White House meeting with former Fed governor Kevin Warsh. The announcement would set in motion a Senate confirmation process to replace Jerome Powell, whose term as chair ends in May 2026. Powell’s separate term as a member of the Board of Governors runs through 2028, and he has not committed publicly to whether he would remain on the Board after his chairmanship concludes.

The timing comes days after the Federal Open Market Committee held its first policy meeting of 2026 and left the benchmark federal funds rate unchanged in a 3.50%–3.75% range. The decision marked a pause after three rate cuts in 2025, with the Fed signaling it is not in a rush to lower rates further as it weighs inflation progress and broader economic conditions.

Kevin Warsh in focus

Warsh, 55, served as a Federal Reserve governor from 2006 to 2011 and was a senior figure during the 2008 financial crisis, including as a key liaison to Wall Street. In recent months, Warsh has argued that the central bank needs significant changes in approach to restore credibility, and he has aligned more closely with the view that interest rates should be reduced more than they have been.

Warsh has also called for an overhaul of the Fed’s footprint in markets, including a smaller balance sheet and looser bank regulation. The Fed, for its part, ended balance-sheet runoff in late 2025 under its “ample reserves” operating framework, shifting toward rolling over Treasury maturities and reinvesting principal payments to keep reserves from falling too far.

Other finalists and the confirmation math

Trump’s public comments and subsequent reporting have identified several other contenders who have been discussed for the role, including current Fed governor Christopher Waller, BlackRock executive Rick Rieder, and White House economic adviser Kevin Hassett. The selection is expected to face immediate scrutiny from financial markets and lawmakers, given the Fed’s central role in inflation control, employment conditions, and financial stability.

• Nominee must be confirmed by the U.S. Senate.
• The Fed chair also leads the Federal Open Market Committee, which sets interest rates.
• A chair transition occurs as monetary policy is near a pause point after 2025 rate cuts.

Institutional independence under strain

The selection process is unfolding amid heightened political and legal pressure surrounding the Federal Reserve. A prominent legal dispute over the attempted removal of Fed Governor Lisa Cook has reached the Supreme Court, raising questions about the limits of presidential authority over the central bank’s leadership. In parallel, Powell has faced an ongoing federal investigation connected to a renovation project at the Fed’s Washington headquarters, a matter that has drawn attention on Capitol Hill and could complicate the confirmation environment for any nominee.

The coming announcement will define the administration’s approach to monetary policy while testing the boundaries of long-standing norms around central bank independence.

The White House schedule released late Thursday did not explicitly list a Fed-related event, but Trump said the decision would be made public Friday.