US President Donald Trump has said he intends to nominate Kevin Warsh as the next chair of the Federal Reserve, setting the stage for a significant leadership change at the US central bank.

The announcement was made via a post on Trump’s Truth Social platform, where the president praised Warsh and described him as a strong choice to lead the Fed. If confirmed by the Senate, Warsh would succeed Jerome Powell when Powell’s term ends in May.

Warsh, 55, previously served on the Federal Reserve’s Board of Governors between 2006 and 2011 and advised Trump on economic policy during his earlier political career. He was widely considered for the role in 2017 but was passed over in favour of Powell, making the nomination a political comeback nearly a decade later.

The nomination comes at a sensitive moment for US monetary policy. While the Federal Reserve has traditionally operated with a high degree of independence from elected officials, Trump has repeatedly criticised the central bank and publicly pushed for lower interest rates. Warsh aligned himself more closely with that view in 2025, calling for rate cuts despite his earlier reputation as an inflation hawk.

Markets reacted cautiously following the announcement. The dollar held on to recent gains while US equity futures remained lower, reflecting investor uncertainty over how Warsh might shape future policy. Although he has recently echoed calls for lower borrowing costs, traders generally view him as more conservative than other potential candidates, given his long-standing concerns about inflation and the size of the Fed’s balance sheet.

Warsh’s appointment would not automatically change interest rate policy. Decisions are made by the Federal Open Market Committee, which includes the Fed’s governors and regional bank presidents. The committee recently voted to keep rates unchanged after delivering three cuts at the end of 2025.

The confirmation process may also prove challenging. The nomination comes amid a Department of Justice probe involving the Federal Reserve related to testimony given by Powell last year, with some lawmakers indicating they may delay Fed appointments until the matter is resolved.

Founded on a career spanning Wall Street, the White House and the Federal Reserve, Warsh played a prominent role during the 2008 financial crisis and has since been an outspoken critic of the central bank’s policies. His potential return places renewed focus on the future direction — and independence — of US monetary policy.