Overview
- President Trump nominated former Fed governor Kevin Warsh to chair the central bank, announcing the pick on Friday on Truth Social.
- Gary Cohn said Warsh is likely to pursue one to two interest-rate cuts this year, describing him as a return to traditional Fed norms.
- Cohn also expects Warsh to seek a smaller Fed balance sheet by selling down securities accumulated in past asset purchases.
- He praised Warsh’s role during the 2008 financial crisis, calling him the Fed’s point person in bank rescues and market stabilization.
- Confirmation faces resistance after Jerome Powell disclosed subpoenas to the Fed, with Sen. Thom Tillis vowing to oppose nominees until the matter is resolved; Cohn meanwhile described a strong economy with GDP near 5%, inflation in the high 2% range, and unemployment around 4–4.5%.