Tag: diversity

At long last, US President Donald Trump picked Kevin Warsh as the next chairman of the Federal Reserve replacing Jerome Powell, and already a lot of public officials and high-ranking members of the private sector support the choice, according to the Kyodo News report plus the White House press statement respectively.

To put things in perspective, posted below is an excerpt from the report of Kyodo News. Some parts in boldface…

U.S. President Donald Trump said Friday he will nominate Kevin Warsh to be the next chair of the Federal Reserve, with the choice of a Wall Street veteran who was a governor of the central bank over a decade ago seen as intended to avoid roiling financial markets.

Trump’s pick to replace Jerome Powell as the Fed chair caps a process that formally began last summer. While screening candidates in private, he has subjected Powell to relentless public criticism for not cutting interest rates more aggressively and challenged the independence of the world’s most influential central bank.

Trump announced the nomination in a post on social media, saying, “I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best.“

“On top of everything else, he is ‘central casting,’ and he will never let you down,” Trump added. The lengthy post, though it included information on Warsh’s professional experience, did not clearly explain the reason for his selection.

Powell’s term as Fed chief ends in May. The role requires Senate confirmation, which may not be smooth sailing for Warsh due to bipartisan concern over the Fed’s independence under Trump, most recently evidenced by the Department of Justice launching a criminal probe into Powell over a renovation of the central bank’s headquarters.

Trump told reporters later Friday in the Oval Office that he was not worried about the confirmation process, calling Warsh the “most qualified” person to take the helm of the Fed, based on his background and experience.

He also said he did not urge Warsh to cut interest rates, but admitted discussing the topic with him.

“I don’t want to ask him that question. I think it’s inappropriate, probably,” Trump said. “I want to keep it nice and pure. But he certainly wants to cut rates. I’ve been watching him for a long time.”

Warsh was previously appointed to the Fed in 2006 at the age of 35, making him the youngest person ever to serve on its board at that time. He was a board member until 2011.

During the 2008 financial crisis, he served as the Fed’s main liaison with Wall Street and earned a good reputation for stabilizing the situation.

Before that, he was a special assistant to President George W. Bush for economic policy and executive secretary of the White House National Economic Council.

After graduating from Harvard Law School in 1995, Warsh joined Morgan Stanley’s mergers and acquisitions division, where he worked for seven years and became vice president and executive director.

U.S. Treasury Secretary Scott Bessent said last week that the screening of candidates for the next Fed chief had narrowed to four finalists.

The four were said to be Warsh, Kevin Hassett, Trump’s top economic adviser, Christopher Waller, a Fed governor, and Rick Rieder, BlackRock’s chief bond investment manager.

Calling Warsh and Hassett “the two Kevins,” Trump had repeatedly said they were “great” in the weeks leading up to his official announcement.

Warsh was a finalist in the 2017 Fed chair race during Trump’s first term and was reportedly a candidate for Treasury secretary in his second presidency.

During his time on the Fed’s board, Warsh was considered a monetary hawk, meaning he was typically supportive of higher interest rates to curb inflation, even in the middle of the financial crisis.

Compared with Hassett, a close ally of Trump’s who has openly advocated lower borrowing costs for businesses and consumers, Warsh is seen by financial markets as someone who could protect the Fed’s independence from the White House.

However, Warsh, 55, an outspoken critic of the central bank, has increasingly aligned with Trump’s views in recent months. The forthcoming Senate process is likely to test his ability to withstand pressure from the president while also reassuring nervous investors.

In a November opinion piece in The Wall Street Journal, Warsh disapproved of the Fed’s current monetary policy and praised the Trump administration for advancing what he called “pro-growth” economic programs, focusing on deregulation and tax reforms.

Meanwhile, the White House press statement revealed a long list of public officials and financial market figures who responded positively to Warsh’s nomination to lead the Federal Reserve. Posted below are selected excerpts from the statement. Some parts in boldface.

The nomination has drawn widespread praise from lawmakers, business leaders, financial experts, and industry voices across the spectrum:

Senate Committee on Banking, Housing, and Urban Affairs Chairman Tim Scott: “The Federal Reserve’s decisions touch every American household, from mortgage rates to retirement savings, and President Trump has been clear that bringing accountability and credibility to the Federal Reserve is a priority, and his nomination of Kevin Warsh reflects that focus. As a former Federal Reserve Governor, Kevin has deep knowledge of markets and monetary policy that will be essential in this role. Federal Reserve independence remains paramount, and I am confident Kevin will work to instill confidence and credibility in the Fed’s monetary policy. As Chairman of the Senate Banking Committee, I look forward to leading a thoughtful, timely confirmation process that carefully examines his vision for focusing the Federal Reserve on its core mission.”

Sen. Jim Banks: “Kevin Warsh is a brilliant pick by President Trump for Fed Chair. Clear from what he wrote in 2021 he understands scale of China’s ambitions. As member of Banking Committee I look forward to working with him to maintain American financial supremacy.”

Sen. Marsha Blackburn: “Kevin Warsh is exceptionally qualified to lead the Federal Reserve as Chairman. I look forward to supporting this nomination in the Senate, and I am confident Kevin will help foster economic growth and create more opportunity for hardworking Americans.”

Canadian Prime Minister Mark Carney: “Kevin Warsh is a fantastic choice to lead the world’s most important central bank at this crucial time.”

Mortgage Bankers Association President and CEO Bob Broeksmit: “MBA congratulates Kevin Warsh on his nomination to serve as Chairman of the Federal Reserve. His prior service on the Federal Reserve Board, where he developed a reputation as a prudent, thoughtful voice on monetary policy, paired with his private sector experience, will be invaluable as he leads the Federal Reserve in what has become an increasingly challenging and complicated mission.”

U.S. Chamber of Commerce President and CEO Suzanne P. Clark: “Kevin is well known to the business community. We appreciate his years of focus on how we grow the American economy and maintain stable prices for America’s families, and look forward to his confirmation process.”

JPMorgan Chase CEO Jamie Dimon: “Kevin Warsh is a highly respected and experienced leader — across government, business and education — who I have seen act with integrity and a dedication to making our country better.”

Job Creators Network CEO Alfredo Ortiz: “Kevin Warsh is the perfect choice to lead the Federal Reserve. He has repeatedly demonstrated understanding of the true driver of inflation: excessive government money printing, not economic growth. Under his leadership, the Fed can finally reach its target inflation rate, something Chairman Powell has continually failed to do, while also expanding access to credit for small businesses. By protecting the value of the dollar, supporting economic growth, and boosting capital access, a Warsh chairmanship can backstop a booming small business economy. The Senate should quickly confirm him.”

Let me end this piece by asking you readers: What is your reaction to this development? Considering the wide-reaching positive reactions to Trump’s pick for the next Chairman of the Federal Reserve, do you feel confident that Warsh is the right choice? Do you hope to see Warsh make positive changes once he takes over as the head of the Federal Reserve? Have you been frustrated with the way Jerome Powell led the Federal Reserve and executed financial policies over the past several years?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

+++++

Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at  @HavenorFantasy as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram athttps://www.instagram.com/authorcarlocarrasco