As mentioned in yesterday's Washington report, Trump officially announced today the nomination of Kevin Warsh to be the next chairman of the Federal Reserve. This means he has placed a Republican insider and a critic of the Fed in the leadership position of this independent institution, which he has continuously criticized and tried to influence during his second term. If confirmed by the Senate, Warsh will take over after current chairman Jerome Powell's term ends in May. Trump has long viewed Powell, who he himself nominated, as one of his main opponents in Washington, and has continuously attacked him, even initiating a criminal investigation. Trump was angry that Powell refused to cut interest rates as he requested, and he clearly expressed his desire for the next chairman to be loyal to him. Warsh previously served as an executive at Morgan Stanley, a consultant to President George W. Bush, and a member of the Federal Reserve Board, making him a typical establishment figure. (Warsh's wife is the granddaughter of a heiress to the Estée Lauder cosmetics empire.) For a president known for distrusting establishment figures and promoting "disrupters," Warsh's selection is notable. According to insiders, Trump initially wanted to choose an outsider, but "later realized that to change the Fed, it would require appointing someone who deeply understands how the Fed operates." Trump has argued that he should have a say in monetary policy, and several key Republican senators have increasingly openly defended the political independence of the Fed. Warsh is expected to face questions about how he will handle opinions from Trump's side.
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Federal Reserve New Chairman Nomination
Original: toutiao.com/article/1855812029012041/
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