Donald Trump has nominated Kevin Warsh to replace Jerome Powell as chairman of the US Federal Reserve.

Warsh, a former Fed governor and a powerful figure on Wall Street, takes on the role with a mission: to deliver the "regime change" he himself publicly demanded!

2️⃣ Who is Kevin Warsh? (The Profile)

At 55, Warsh is no stranger to politics. He has the confidence of Wall Street and prior experience at the Fed.

The market views the choice favorably: he has the technical credibility to not be seen as a mere "puppet," but enough alignment with Trump to deliver the interest rate cuts the White House demands.

3️⃣ The Doctrine of "Regime Change"

In July 2025, Warsh said on CNBC that the Fed needed a "regime change" and that the institution suffered from a "credibility deficit."

Now, he's the boss.

The expectation is for a more critical stance towards current models and, inevitably, a more aggressive monetary policy in the short term.

4️⃣ The Institutional War (DOJ vs. Powell)

The nomination comes at a time of heightened tension in the bank's recent history.

The Department of Justice (DOJ) subpoenaed Powell regarding the costs of renovating the Fed headquarters—a move Powell interpreted as a "pretext" to force his resignation.

Trump wants control over interest rates; Powell is fighting for the institution's independence.

5️⃣ The Plot Twist: Will Powell Stay?

Here's the detail that few notice: Powell loses the Chairmanship, but his term as Governor extends until 2028.

Historically, former chairmen resign. But Powell could choose to remain on the board simply to be a voice of resistance and shield the Fed from direct political interference from Trump.

6️⃣ The Obstacle in the Senate

Warsh's confirmation will not be a walk in the park.

Republican Senator Thom Tillis has already warned that he will block any nomination until the DOJ investigation into the Fed is completed.

It would be political paralysis while the economy cries out for direction.

7️⃣ The Economic Scenario

The American job market has slowed, and inflation isn't completely dead yet.

Traders are pricing in the Fed to take interest rates to a neutral rate of 3%.

Warsh takes over with the pressure of stimulating the economy without reigniting inflation, all under the shadow of a president who sees the dollar and interest rates as political tools.

8️⃣ The era of the purely "Data Dependent" Fed is over.

With Warsh (and Trump breathing down his neck), we've entered the era of the Fed pressured by nominal growth.