EDITORIAL: New Fed head signals stark changeUS President Donald Trump on Friday last week nominated former US Federal Reserve governor Kevin Warsh to succeed Fed Chair Jerome Powell, who Trump has repeatedly criticized for not cutting interest rates more swiftly. The decision was widely expected, and not unanimous, as two of the 12 Fed officials backed a quarter-point rate cut. Economists considered Warsh as the safest choice of Trump’s Fed chair candidates, which also included Fed governors Christopher Waller and Michelle Bowman, as well as US National Economic Council Director Kevin Hassett. Despite his long-standing tendency to be tough on inflation, Warsh has more recently talked about the need to lower rates, aligning with Trump’s stance. Choosing a Fed chair is never merely a personnel change; it is a significant decision that signals the direction of US economic policy.

Source: Taipei Times February 02, 2026 16:06 UTC