Trump has nominated a candidate to head the Fed instead of Powell

On January 30, US President Donald Trump nominated a candidate to replace the current head of the Federal Reserve System, Jerome Powell.

"I am pleased to announce that I am nominating Kevin Warsh for the post of chairman of the Board of Governors of the Federal Reserve System," he wrote on his page on the Truth Social network.

Trump noted that Warsh was previously the governor of the Federal Reserve in 2006-2011, becoming the youngest member of the board in history, and also served as special assistant to the president for economic policy.

The US president expressed confidence that Warsh would become one of the greatest heads of the Federal Reserve and would not let Americans down. The candidate must be approved by the U.S. Senate.

Hidden threat: the US has launched a criminal investigation against the head of the Federal Reserve

The case is related to the costs of repairing the regulator's headquarters

On January 13, Trump publicly insulted Chairman Powell, promising that he would leave his post soon. Powell's term of office as head of the Federal Reserve expires on May 15, 2026, while he may remain a member of the Board of governors until January 31, 2028.

The head of the Federal Reserve announced on January 11 that the US Department of Justice was threatening him with criminal charges. According to him, the pressure is being exerted by the administration of the President of the United States because of the interest rates set by the Fed. He noted that the agency sets their value based on "public interests, and not in accordance with the preferences of the president."

At the same time, the Financial Times newspaper also reported in July last year that any attempt to limit the independence of the US Federal Reserve would "have a very bad effect on the markets."

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