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Story perspectives

Warsh Poised to Replace Powell Amid Legal Scrutiny

1/17/2026

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Story summary
  • Warsh is the leading candidate to replace Jerome Powell as Fed chair, with markets pricing his nomination at about 60%.
  • U.S. President Donald Trump indicated he wants to keep Kevin Hassett as National Economic Council Director.
  • Powell faces legal scrutiny, including a criminal investigation, heightening bipartisan concerns about Fed independence.
  • Warsh’s Fed experience could help him win cross-party support, and a final decision is expected soon.