Kevin Warsh named next chair of the Federal Reserve. Full Trump statement released.

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Stock futures fell Friday, a day after the S&P 500 posted a second consecutive losing session, but trimmed declines after President Donald Trump nominated Kevin Warsh to succeed Jerome Powell as Federal Reserve chair.

Futures tied to the broad market index
were down 0.4%, and Nasdaq 100 futures
lost about 0.6%. Dow futures
dropped 202 points, or 0.4%. At one point, futures contracts were down around 0.8% each.

“I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best,” said Trump in a Truth Social post.

Warsh’s selection was likely to ease concern about Fed independence because of his experience as a Fed governor and strong stance at times against inflation. While he is likely to push for lower rates in short term as Trump wants, the financial markets view him as someone who wouldn’t always follow the president’s direction and maintain credibility for monetary policy.

“The market shouldn’t be impacted greatly by the news,” said Jay Woods, chief market strategist at Freedom Capital Markets. “While he had been somewhat critical of Jerome Powell for being too late to cut rates, he should understand the importance of the independence of the Fed.”

https://www.cnbc.com/2026/01/29/stock-market-today-live-updates.html

NEW FED CHAIR: KEVIN WARSH

It’s official: Kevin Warsh has been nominated as the next Fed chair.

The markets don’t like it.

I don’t really like it either.

But what is happening behind the scenes is much deeper than a simple appointment.

Here’s the truth:

Make no mistake, Bessent is behind this.

Why Warsh?

CREDIBILITY.

The goal is to restore the Fed’s legitimacy, which has been shattered over the last 15 years.

Since 2008, the Fed hasn’t just been a central bank.

It became the market’s guardian angel.

Injecting liquidity the moment things got scary.

Protecting asset prices.

Warsh is the biggest critic of this model.

His view is simple:

If a market cannot correct, it’s not a market.

Warsh believes the Fed has gone rogue.

It expanded beyond its mandate to become a “universal insurer.”

Appointing him sends a massive signal:
The Fed is returning to its core lane.

– Inflation control
– Banking stability
– NO more automatic market bailouts

This is where it gets complicated.

Trump thinks in terms of POWER.

He wants technological domination and reindustrialization.

He needs low rates to finance it.

Warsh might not give him that.

The US has massive debt and deficits.

The real fear is “Fiscal Dominance.”

Will the Fed be forced to keep rates low just so the Treasury can survive?

Warsh hates this idea. He hates debt monetization.

THE VERDICT?

The markets are panicking because of the uncertainty.

But the likely outcome isn’t war between the Fed and Trump.

It’s informal coordination.

But there is a red line:

If inflation rips higher… Warsh will have to choose between institutional credibility and political loyalty.

The next 4 years are going to be full of surprises.

But don’t worry, I’ll keep you updated on everything as time goes by, like I always do.

Btw, I called every market top and bottom of the last decade, and i’ll call my next move publicly like I always do.

Many people will wish they followed me sooner.