Trump’s recent attempt to oust another Fed governor, Lisa Cook, and his administration’s investigation into Powell over renovation costs at the bank, have sparked worries about Fed independence. Economic challengesWarsh, who is from New York, was once known as an inflation “hawk” favouring higher interest rates to curb price hikes. As Trump continues to call for lower interest rates to boost the economy, all eyes will be on whether Warsh defends the bank’s independence in the face of politics. The selection ends a race that narrowed to four contenders – Warsh, Fed governor Christopher Waller, Rick Rieder of BlackRock and Trump’s top economic adviser Kevin Hassett. The decision caps a closely watched search for a successor to Fed chair Powell, whom the President has repeatedly lambasted for not cutting interest rates more swiftly.

Source: New Zealand Herald January 30, 2026 18:51 UTC