President Donald Trump nominated Kevin Warsh to replace Jerome Powell as Federal Reserve chair. Warsh, 55, has past Fed experience and is seen as credible by Wall Street. Trump has criticized Powell since 2018, pressing for lower rates. Warsh has called for “regime change” at the Fed and faces a tough road ahead in a challenging economic environment.

The nomination of Warsh comes amid inflation, government borrowing, and political pressure on the Fed. Questions about Fed independence have arisen, with Trump and officials suggesting changes in how rates are set. The nomination ends a competitive process that included 11 candidates. Warsh faces political and economic challenges, with markets expecting minimal rate cuts this year.

Republican Sen. Thom Tillis plans to block Fed nominees until a Justice Department probe is finished. Inflation remains above the Fed’s 2% target, while the labor market is slowing. Markets anticipate only two more rate cuts this year. Powell may remain as a governor, challenging Trump’s efforts to influence Fed independence. The Supreme Court could decide the extent of a president’s power over Fed board members.

Read more at CNBC: Trump nominates Kevin Warsh for Federal Reserve chair to succeed Jerome Powell