Story perspectives

Trump Names Warsh Fed Chair, Targets $6.7 T Balance-Sheet Cut

4/28/2026

Summary

Trump Nominates Warsh

President Donald Trump nominated Kevin Warsh on Jan. 30, 2026 as Federal Reserve (Fed) chair effective May 15, 2026, ending Jerome Powell’s term and targeting a $6.7 trillion balance-sheet cut.
A CNBC Fed Survey of 26 economists found 50% view Warsh as independent and 65% anticipate an $800 billion cut in the first year.
Analysts warn bond sales to meet the cuts could raise yields, increase borrowing costs, and pressure the Dow, S&P 500 and Nasdaq.

Summary

Tillis Backs Warsh

Senator Thom Tillis announced Sunday he will drop opposition to Kevin Warsh’s confirmation.
Senator Thom Tillis said Justice Department assurance that Fed Chair Jerome Powell probe is settled lets him support Kevin Warsh.
Justice Department confirmed on April 27, 2026 it ended its criminal investigation of Fed Chair Jerome Powell.
Prosecutor Jeanine Pirro will refer the case to inspector general, with Acting Attorney General Todd Blanche saying referral may follow.

History

Historical Context

In July 1979 President Jimmy Carter named Paul Volcker Fed chair to combat double-digit inflation; Volcker lifted the federal funds rate to a 20 percent peak in June 1981, cutting inflation from 14.8 percent in March 1980 to below 3 percent by 1983 but triggering a recession with unemployment over 10 percent. On January 30 2026 Donald Trump nominated investment-banker Kevin Warsh, echoing Volcker’s aggressive tightening agenda.

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Trump Nominates Warsh

President Donald Trump nominated Kevin Warsh on Jan. 30, 2026 as Federal Reserve (Fed) chair effective May 15, 2026, ending Jerome Powell’s term and targeting a $6.7 trillion balance-sheet cut.
A CNBC Fed Survey of 26 economists found 50% view Warsh as independent and 65% anticipate an $800 billion cut in the first year.
Analysts warn bond sales to meet the cuts could raise yields, increase borrowing costs, and pressure the Dow, S&P 500 and Nasdaq.

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