Photograph: Tierney L Cross/Bloomberg via Getty ImagesWhat will Kevin Warsh, Trump’s nominee to be the next Fed chair, mean for interest rates? The muted market reaction to the announcement of his candidacy suggests that he is not simply Trump’s stooge, drafted in to do his master’s bidding (lower interest rates quicker than the current office holder, Jerome Powell). Trump’s attempts to break the Fed’s independence (he has continually attacked Powell for not reducing interest rates fast enough) have previously played negatively with markets. By the same token, Warsh, traditionally a monetary hawk in favour of higher interest rates, has seemingly all of a sudden changed his tune on rates, calling for faster cuts, music to Trump’s ears. So has Warsh simply changed tack on rates to curry favour with Trump and land the Fed job?

Source: The Irish Times February 10, 2026 16:15 UTC