Who is Trump's Fed chair pick?

Summary

Marketplace Morning Report Summary

Episode: Who is Trump's Fed chair pick?
Date: January 30, 2026
Host: David Brancaccio

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Episode Overview

This episode delivers updates on major business and economic developments, featuring President Trump’s nomination for Federal Reserve chair, the latest in energy and battery recycling for AI-era data centers, and a BBC World Service report on Madagascar’s first modern highway and its wide-reaching effects. In under 10 minutes, listeners get a sweep of overnight news, major policy moves, and global infrastructure projects.

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Key Discussion Points & Insights

1. President Trump’s Federal Reserve Chair Nominee

(00:54–02:28)

• Nominee Announcement:
  President Trump has nominated Kevin Warsh, a former Federal Reserve governor (2006–2011) and recent Fed critic, to succeed Jerome Powell as Fed Chair when Powell’s term ends in May.

• Warsh’s Policy Position:

  • Warsh has previously advocated for “regime change” at the Fed, suggesting significant shifts in policy direction.
  • He is critical of past Fed efforts, arguing they failed to act strongly against inflation.

  Notable Quote:

  “The central bank can hit any price level that it wants, any inflation level that it wants. We might not like how they do it, but the idea that is they should be blaming someone else strikes me as quite antithetical to good economic history.”
  —Kevin Warsh, speaking at the Hoover Institution (01:45)

• Policy Stance Alignment with Trump:
  Warsh supports lowering interest rates, echoing Trump’s previous public demands. He argues that artificial intelligence-induced productivity gains will counter inflationary pressures from rate cuts.

  Warsh’s thesis is that advancements in artificial intelligence have historically driven “deflationary force” through higher productivity and that this trend will continue.

• Regulatory Philosophy:
  Warsh favors a less interventionist approach to financial market regulation and a lighter touch in bank supervision.

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2. AI’s Expanding Energy Footprint & Innovative Solutions

(02:28–03:08)

• Issue Overview:

  • Artificial intelligence’s rapid adoption is straining power grids, with concerns over potential shortages, rising consumer costs, and environmental impacts.

• Industry Response:

  • Some major companies are funding nuclear plant restarts to meet energy demand.
  • Redwood Materials: A notable startup is repurposing used electric vehicle batteries to supply energy to an AI data center in Nevada.

  Notable Quote:

  “12 megawatts of reused electric vehicle batteries powering a data center completely disconnected from the grid. It only took us four months to build.”
  —Colin Campbell, CTO, Redwood Materials (02:56)

• Context:
  The discussion is part of a larger series comparing the AI boom to the dot-com bubble, exploring similarities and divergences across economic and tech cycles.

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3. Madagascar’s First Modern Highway: Progress and Controversy

(05:06–08:38)
Segment by Andre Lombard, BBC World Service

• Background:

  • Madagascar’s roads are considered among Africa’s most challenging, severely hindering transport and commerce.
  • The first stretch (8 km) of a new 240 km highway between the capital (Antananarivo) and the main port (Toamasina) has been inaugurated, aiming to slash travel times from 16 hours to just 2.5 hours.

• Economic Hopes:

  • Project cost: $1 billion, with expectations of boosting trade, toll revenues, and economic growth.
  • Three-quarters of the population live in poverty—road development is viewed as a potential lifeline.

• Local Concerns:

  • Residents and farmers express fears over displacement and lack of consultation.

    Notable Quote:

    “It hurts me. I feel like I’ve been stabbed in the back… It’s hard because no one has been in touch with us about the proposition of the highway.”
    —Nenny Farah, local farmer (07:39)

• Political Context:

  • The original project was initiated under President Andry Rajoelina, who was ousted in a coup; the new government pledges to continue construction.
  • Environmentalists raise alarms about risks of illegal mining, deforestation, and threats to food and water security.

  Notable Quote:

  “It changes everything for the agriculture, for the water, for the transport, for everything.”
  —Max Fontaine, former Environment Minister (08:10)

• Conclusion:
  The development sets up a clash between economic modernization and environmental or social sustainability, illustrating complex challenges in emerging economies.

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Memorable Quotes (with Timestamps)

• Kevin Warsh on Fed Responsibility (01:45)

  “The central bank can hit any price level that it wants, any inflation level that it wants. We might not like how they do it, but the idea that is they should be blaming someone else strikes me as quite antithetical to good economic history.”

• Colin Campbell on Battery-Powered Data Center (02:56)

  “12 megawatts of reused electric vehicle batteries powering a data center completely disconnected from the grid. It only took us four months to build.”

• Nenny Farah, Malagasy Farmer (07:39)

  “It hurts me. I feel like I’ve been stabbed in the back… It’s hard because no one has been in touch with us about the proposition of the highway.”

• Max Fontaine, Madagascar’s Ex-Environment Minister (08:10)

  “It changes everything for the agriculture, for the water, for the transport, for everything.”

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Noteworthy Segments (Timestamps)

• Trump’s Fed Chair Pick & Analysis: 00:54–02:28
• AI Energy and Battery Solutions: 02:28–03:08
• Madagascar Highway Report (BBC): 05:06–08:38

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This episode gives a compact yet rich snapshot of major financial leadership shifts, energy and AI linkages, and global infrastructure challenges—showing how local and global economies are navigating technological, political, and environmental change.

Transcript

[David Brancaccio]

This Marketplace podcast is supported by Viking, committed to exploring the world in comfort. Journey through the heart of Europe on an elegant Viking longship with thoughtful service, destination focused dining and cultural enrichment on board and on shore. And every Viking voyage is all inclusive with no children and no casinos.

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[David Brancaccio]

The President has chosen his nominee for second most powerful economic policy position in the country. David I'm David Brancaccio in Los Angeles this morning, President Trump revealed his choice to lead the Federal Reserve. It is Kevin Warsh, a former Fed governor and more recent Fed critic. If confirmed by the Senate, Warsh would replace Jerome Powell, whose term expires in May. Warsh had called for, quote, regime change at the Fed Marketplace's Nova Safo reports.

[Nova Safo]

Kevin Warsh served as fed governor from 2006 until 2011, a timespan that included the financial crisis and the Federal Reserve's efforts to stabilize Wall Street. He's a visiting fellow at Stanford's Hoover Institution, a conservative leaning think tank. Warsh has recently criticized the Federal Reserve, saying that it has not done enough in the past to fight inflation. Here he is speaking at the Hoover Institution.

[Marketplace Announcer]

The central bank can hit any price level that it wants, any inflation level that it wants. We might not like how they do it, but the idea that is they should be blaming someone else strikes me as quite antithetical to good economic history.

[Nova Safo]

Warsh believes the Fed now should lower interest rates more, something President Trump has called for. Walsh says doing so won't trigger more inflation because artificial intelligence and its advancements will boost productivity. Higher productivity has historically been a deflationary force. Warsh also wants less intervention in financial markets and a more hands off approach at the Fed toward bank regulation. I'm Nova Safa for Marketplace.

[David Brancaccio]

With electricity hungry artificial intelligence, there's concern about power shortages, higher bills for consumers and environmental degradation. Some big companies are paying to restart nuclear plants on a different scale. There's Redwood Materials, a startup that takes used electric vehicle batteries to help power a data center in, for instance, Nevada. Colin Campbell is Chief Technology Officer at Redwood Materials. What that is is 60 megawatt hours.

[Marketplace Announcer]

And 12 megawatts of reused electric vehicle batteries powering a data center completely disconnected from the grid. It only took us four months to build.

[David Brancaccio]

That's just a slice from our series from my colleagues Megan McCarty Carino and Kai Rysdal on this AI boom. Among the angles comparing similarities and differences between AI fever now and the dot com bubble and bust from the turn of the century Marketplace Tech Marketplace's half hour program and us here in the Morning have parts of that. This Marketplace podcast is supported by Viking, committed to exploring the world in comfort. Journey through the heart of Europe on an elegant Viking longship with thoughtful service, destination focused dining and cultural enrichment on board and onshore. And every Viking voyage is all inclusive with no children and no casinos.

[Marketplace Announcer / Fundrise Advertiser]

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[David Brancaccio]

Malagasy, the language of Madagascar. AHU knew Miraca Malagashi Ratsi Bey. That means I speak Malagasy really badly. But I can at least say that because I lived in Madagascar from my ninth grade. Long story why? But among the many things I can tell you about that island nation off of East Africa, it really has lemurs. Its economy is challenged and the ruts on its red earth roads could swallow a Volkswagen. So when our colleagues at the BBC pitched a story about Madagascar opening its first stretch of modern highway, I was especially interested in the economic, ecological and cultural impacts. Here's reporter Andre Lombard.

[Andre Lombard]

Life in the driving seat isn't always easy in Madagascar. Twice a week, Reika makes the long return journey between the capital, Antananarivo, and the country's biggest port, Toro Messina. A trip he says can take up to 16 hours. All this in a country the IMF says has some of the worst roads on the continent. The current road is really bad. It's very narrow and there are loads of trucks. It makes me very worried. But that could all be about to change. The first 8km of a new highway that links the two cities together has been inaugurated. Eventually it will stretch 240km, budgeted to cost a billion dollars. Some of that money will be recouped in tolls, but it's hoped the main payday will come through the increased trade the road will bring. Journey times are predicted to reduce to around two and a half hours. And certainly, as we turn onto the new road, its smooth tarmac is a big change from the rough and ready current road. So we've just stopped off after going onto the new highway. And if it sounds very quiet, that's because it is. We've only seen a few cars passing as we stand here. We venture further into the countryside, off the main roads and onto hilly, rugged tracks that seriously test our 4x4. Salama. Nice to meet you.

[Marketplace Announcer / Fundrise Advertiser]

How are you?

[Andre Lombard]

We're here to meet Nenny Farah. The 70 year old has farmed rice and pineapples here all her life, with her family owning the land for generations. But now that could all change. She shows me towards a red post that appeared near her land overnight, which marks the route the new highway will take. It hurts me. I feel like I've been stabbed in the back.

[Marketplace Announcer / Fundrise Advertiser]

It's hard because no one has been in touch with us about the proposition of the highway.

[Andre Lombard]

The highway was initially approved by the presidency of Andrii Rajelina, who was deposed in a military coup in October. The new government has said it will continue with the motorway project. The Environment Minister at the time of the start of the highway construction was 29 year old max Fontaine. He tells me that the country is getting the balance of protecting its heritage and environment with its economic development. Right. It changes everything for the agriculture, for.

[Marketplace Announcer / Fundrise Advertiser]

The water, for the transport, for everything.

[Andre Lombard]

It's certainly true that economic progress is sorely needed here. Three quarters of people live in poverty. However, environmental campaigners say it will actually do the opposite. Opening access to illegal mining and logging, leading to food and water insecurity for locals. Whatever the rights and wrongs, it does look like the road will go ahead, changing the face of this unique country forever.

[David Brancaccio]

Andre Lombard is with our newsroom partners at the BBC in Los Angeles, I'm David Brancaccio to the Marketplace Morning Report from apm American Public Media.

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