What to know about Kevin Warsh, the new Fed Chair nominee

Ending months of speculation, President Donald Trump nominated former Federal Reserve Governor Kevin Warsh to head the central bank when incumbent Jerome Powell’s term ends in May.

Market reaction
Gold and silver prices fell 4.4% and 13%, respectively, on Friday. The Dow Jones, Nasdaq, and S&P 500 lost between 0.1% and 0.3%.

Meanwhile, the US dollar rose 0.5%, and the 10-year Treasury yield was up 4.24%.

Warsh, who previously served on the Board of Governors during the 2008 financial crisis, returns to the institution he has frequently criticized as over-relying on stimulus. He is often viewed as a hawk concerned with long-term price stability.

He is married to Jane Lauder, the billionaire heiress to the cosmetics company Estee Lauder.

Analysts suggest that while he aligns with Trump’s views on lower interest rates, Warsh faces the challenge of navigating a fractured Federal Open Market Committee.

He may also face a rocky Senate confirmation process. Republican Senator Thom Tillis said he will block any Trump Fed nominees until the federal investigation into the current Fed Chair Powell is resolved.

Powell is being probed over the $2.5 billion renovation of the Fed’s Washington headquarters.