Kevin Warsh, former US Federal Reserve governor, returns to a different Fed under President Trump’s appointment. He served during the 2006-2011 financial crisis, criticized post-crisis monetary policy, and is now appointed to the top Fed post. Warsh’s appointment signals a potential shift in Fed policy and approach to inflation.

Warsh may face resistance from the Federal Open Market Committee in implementing aggressive rate cuts. The FOMC expects only one rate cut in 2026 and another in 2027, in line with market expectations. Despite his reputation as a hawk, Warsh is seen as a pragmatist who may bring the FOMC along for a more dovish approach.

Warsh emerged as the top candidate from a competitive field, chosen for his willingness to lower rates. Before confirmation, he faces a Senate investigation into the Fed’s renovation project. Once confirmed, Warsh will have to navigate a Senate still under Republican majority, with broad support expected for his appointment.

Read more at CNBC: Who is Kevin Warsh? Trump’s Fed Chair pick