Trump Names Pick for New Fed Chair

February 03, 2026 | Last Updated on: February 03, 2026

By Vincent Calio

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President Donald Trump has named Kevin M. Warsh as his pick to replace Jerome Powell as Chairman of the Federal Reserve. Warsh will face a vote by the Senate in April that will determine if he will be sworn into the position. Warsh served as a director in the Mergers and Acquisitions Strategy group at Morgan Stanley and as a member of the Federal Reserve Board of Governors.

During his 8-year tenure as Fed chair, Powell was repeatedly criticized by President Trump for not lowering interest rates quickly enough and for repeatedly raising the overnight rate when inflation spiked in 2021 due to supply chain disruptions after the COVID pandemic. Trump often referred to Powell as Jerome “Too Late” Powell for not lowering rates quickly enough over the past year.

What This Means for Small Businesses

The big question is whether Warsh, if nominated, would bow to pressure by Trump to push the Federal Open Market Committee (FOMC) for more monthly rate cuts to provide short-term boosts to the economy, especially the housing market. While it's too early to state what Warsh's approach to monetary policy will be, he was quoted by Fox News in July as saying, “We used to say that interest rate policy is a housing policy, but we're in a housing recession right now.” He added that cutting rates would represent the “Next degree of acceleration.”

Small businesses have been eager for rate cuts over the past few years to ease the cost of borrowing for their businesses. They saw 3 consecutive rate cuts at the end of 2025 before the FOMC announced it would hold steady on the overnight rate on Jan. 28, 2026.