President Donald Trump has nominated former Federal Reserve governor Kevin Warsh to serve as the next chair of the U.S. central bank, setting up a leadership transition when Jerome Powell’s term expires in May 2026.

Warsh, 55, served on the Federal Reserve’s Board of Governors from 2006 to 2011, a tenure that spanned the global financial crisis. Since leaving the Fed, he has been a fellow and lecturer at Stanford University’s Hoover Institution, remaining an influential voice in monetary policy discussions.

Throughout his post-Fed career, Warsh has argued for a smaller Federal Reserve balance sheet, closer scrutiny of asset-price inflation, and a reduced reliance on quantitative easing. Those views closely mirror Trump’s long-standing criticism of expansive central bank policy and come as the president has renewed calls for lower interest rates and a more accommodative stance.

The nomination marks a clear contrast with Powell’s tenure, which has emphasized institutional independence and a cautious, data-driven approach to both tightening and easing cycles amid persistent inflation volatility.

Trump praised Warsh, calling him “central casting” for the role and adding that he has “no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best.”

Warsh’s nomination will require Senate confirmation, a process expected to draw heightened scrutiny amid ongoing debate over the Federal Reserve’s independence, balance sheet strategy, and the future direction of monetary policy. For markets, the announcement signals a potentially meaningful shift in tone at the central bank as investors begin to look beyond the current rate cycle toward the next phase of Fed leadership.