Trump nominates Kevin Warsh to head U.S Fed

January 31, 2026 (MLN): U.S President Donald J. Trump has selected Kevin Warsh to serve as the Chairman of the Board of Governors of the U.S Federal Reserve System.

The nomination comes at a particularly challenging time for the U.S. central bank, with inflation not fully tamed, government borrowing on the rise, and the Fed facing unusually direct political scrutiny over its monetary policy decisions.

The announcement immediately rattled financial markets. Gold and silver prices plunged in one of their steepest single-day declines in decades.

 Traders who had heavily bet on metals during their historic 2025 rally moved quickly to lock in gains, while a strengthening U.S. dollar added further pressure.

Bullion priced in dollars becomes more expensive for international buyers, dampening demand and challenging the narrative of gold and silver as alternatives to the dollar.

Kevin Warsh brings a blend of policy, academic, and private-sector experience to the role. He is currently the Shepard Family Distinguished Visiting Fellow in Economics at the Hoover Institution and a lecturer at Stanford Graduate School of Business, and serves as a Partner at Stanley Druckenmiller’s Duquesne Family Office LLC.

Before joining the Fed, he was Special Assistant to the President for Economic Policy and Executive Secretary of the White House National Economic Council and previously worked in Morgan Stanley’s Mergers & Acquisitions Department in New York.

Warsh’s nomination eased concerns over central bank independence and suggested a potentially firmer stance on inflation.

President Trump praised Warsh as “central casting” for the role and expressed confidence that he will be remembered as one of the great Fed Chairmen, on his Truth Social account.

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