Trump says he expects Fed nominee Kevin Warsh to deliver lower interest rates

Feb 4, 2026, 7:08:36 PM UTC(4 hours ago)

Impact: Medium

Affected Assets

President Donald Trump nominated Kevin Warsh to succeed Jerome Powell as the next chair of the Federal Reserve on January 30, 2026, whose term expires in May.
Trump publicly stated that he did not receive a commitment from Warsh to cut rates but made it clear he expects him to do so, suggesting Warsh would not have been nominated if he favored rate hikes.
Warsh, a former Fed governor, has been critical of the central bank's past handling of inflation and has recently supported Trump's push for lower borrowing costs.
The nomination has created market uncertainty, with some investors fearing Warsh's past hawkish leanings might mean slower rate cuts, while others anticipate aggressive easing.
Economist Robin Brooks predicted that a Warsh-led Fed could slash rates by 100 basis points before the mid-term elections, contradicting initial market fears and potentially reviving a bull run in assets like Bitcoin.

TRUMP SAYS HE THINKS WARSH UNDERSTANDS HE WANTS LOWER RATES, WOULD NOT HAVE GOTTEN JOB HAD HE SAID HE WANTED TO RAISE RATES