The Journal. — “Who Is the New Fed Chair?”

Date: January 30, 2026
Hosts: Jessica Mendoza & Ryan Knutson
Guest: Nick Timiros (Federal Reserve reporter, WSJ)

Episode Overview

In this episode, The Journal examines President Trump's pivotal decision to appoint Kevin Warsh as the new Federal Reserve Chair. The hosts and guest Nick Timiros delve into Warsh’s career, ideology, and what his leadership could mean for the direction of U.S. monetary policy, especially given the political backdrop and economic uncertainties facing the Fed.

Key Discussion Points & Insights

1. The Announcement & Selection Process

• President Trump's Announcement: Kevin Warsh will be the next Chair of the Federal Reserve (00:16).
  • The selection process was described as drawn out and theatrical, likened to "The Apprentice: Fed Edition," with many candidates whittled down to four (00:26).
  • Many analysts had expected Warsh would get the role, so while there was intrigue, the outcome surprised few insiders (00:41).

Notable Quote:

• Nick Timiros: “It was like an episode of his old TV show, The Apprentice. I called it the Apprentice Fed Edition because he had everybody sort of guessing.” (00:26)

2. Who Is Kevin Warsh?

• Background:
  • 55 years old, upstate New York native, educated at Stanford (BA) and Harvard (JD), former Morgan Stanley banker (02:32).
  • Married Jane Lauder (Estee Lauder heiress); father-in-law Ron Lauder is Trump's former classmate (02:42).
  • Appointed as a Fed Governor at age 35 (the youngest ever), after working in the George W. Bush White House (03:38).
• Reputation:
  • Once seen as a Washington and Wall Street rising star, Warsh became a prominent Fed critic after his term ended in 2011.
  • Transitioned from establishment Republican to vocal Trump supporter (01:00).

Notable Quote:

• Nick Timiros: “Kevin Warsh is a Fed insider turned critic. He is an establishment Republican turned Trump supporter.” (01:00)

3. Warsh’s Views on Monetary Policy & Inflation

• Experience during Crisis:
  • Warsh had a "ringside seat" during the 2008 financial crisis, initially supporting quantitative easing before growing concerned about its long-term effects (03:58–04:19).
  • After leaving the Fed, he warned easy money policies could cause inflation or asset bubbles (04:19).
• Critique of the Fed:
  • Warsh frequently wrote op-eds and gave interviews warning about the risks of prevailing Fed policies (04:19, 04:48).
  • He’s argued that the Fed’s commitment to economic models (linking growth, jobs, and inflation) is misguided, and has promoted more open debate within the institution (07:32–08:32).

Notable Quotes:

• Kevin Warsh: “Bad economic policy provokes our adversaries to take us on, so that makes the country less prosperous and less peaceful.” (04:48)
• Kevin Warsh: “What the Fed needs is more robust discussion of ideas, less groupthink.” (08:32)

4. Warsh’s Relationship with Trump & Previous Fed Chair Selection

• 2017 Chair Selection:
  • Warsh was a finalist in Trump’s first term, but the role went to Jerome Powell due to Trump’s concerns about Warsh’s stance on interest rates and his youthful appearance (05:17).
  • Trump preferred someone "who favors low interest rates" and saw Powell as a better fit at the time (05:17–06:07).
• Evolution of Views:
  • Warsh became more vocal in favor of cutting rates, especially after 2021 when inflation surged and he criticized Powell’s handling of the situation (06:25).

Notable Quote:

• Nick Timiros (on Trump’s criteria): “I want somebody who favors low interest rates… Trump saw the long track record, the written record that Warsh had published, and said, well, maybe this guy doesn’t actually want lower interest rates.” (05:17)

5. Warsh’s Expected Policy Approach

• Rate Cuts Expected:
  • Warsh has signaled support for rate cuts, particularly as inflation has recently stabilized (06:57–07:10).
  • He opposes the “slavish devotion” to traditional economic models within the Fed (07:32–08:23).
  • Recent WSJ op-ed stated that with better Fed leadership, the economy could boom (07:32).
• Dissent from Fed “Orthodoxy”:
  • Warsh is likely to seek reforms intended to foster growth and reduce inflation, challenging standard central bank groupthink (08:23–08:38).

Notable Quote:

• Kevin Warsh (on Fox News): “…I think [the Fed’s] track record is really quite poor in forecasting the growth of the economy from policies like the ones the President put in place.” (07:10)
• Nick Timiros: “A lot of analysts expect Warsh will push for some interest rate cuts once he takes over as Fed chair.” (07:32)

6. Image, Presentation, and Trump’s “Central Casting” Mentality

• Trump praised Warsh’s appearance and “central casting” qualities (08:57), suggesting looks and presentation factored into the decision.
  • Warsh now has a more seasoned, “dignified” look versus when he was passed over in 2017 (09:17–09:23).

Memorable Moment:

• Nick Timiros: “You know, Kevin Warsh wears these very well-tailored suits that don’t require a belt. He definitely comes out of central casting. Trump is right about that.” (09:23–09:36)

7. The Economic Challenge Ahead

• Warsh will face:
  • Slowing job growth, underlying causes uncertain (immigration, structural factors) (09:42)
  • Persistent inflation above the Fed’s 2% target for six years (09:42)
  • Uncertainty over the impact of AI on the labor force (09:42–10:38)
  • Potential need for new approaches to monetary policy as economic realities shift (09:42–10:38)

8. The Politicized Confirmation Process & Fed Independence

• Confirmation expected due to GOP Senate majority, but Senator Thom Tillis vows to block nominations until a DOJ probe into outgoing Chair Powell is resolved (11:24–12:16).
• Lawmakers from both parties express concern the investigation is an attempt to undermine Fed independence.
• Warsh’s own views on Fed independence have shifted over time:
  • In 2010, he gave strong speeches in favor of an independent Fed.
  • Recently, he’s dismissed concerns about presidential pressure (12:49–14:08).

Notable Quotes:

• Nick Timiros (on Warsh's shifting stance): “So Warsh's view is different today from what it was 15 years ago. And a lot of people I talk to have questions about, well, which Kevin Warsh shows up at the Fed?” (12:49–14:08)

9. What Will a Warsh Fed Look Like?

• Warsh is promising a "complete disruption" and “regime change” at the Fed, both in policy and in how the bank operates internally (14:15–14:37).
• Unanswered questions:
  • How will asset holdings be managed?
  • Will Warsh overhaul Fed staffing and staffing philosophy?
  • Will significant change come fast, or be slowed by the Fed's consensus-based structure?
  • Timiros likens the Fed to an aircraft carrier—it can turn, but not on a dime (15:06–15:12).

Notable Quotes:

• Kevin Warsh: “That means regime change in how we're thinking about inflation, how we're conducting policy, how we're communicating. It's also regime change in terms of how we're supervising and regulating banks.” (14:28)

10. Looking Forward

• New uncertainty begins: instead of “Who will Trump pick?” now the focus is “What is Warsh actually going to do?”
• Trump's explicit demand for a chair who will deliver low rates sets up a more openly politicized relationship with the White House (15:45–16:40).

Notable Quote:

• Nick Timiros: “There is never a dull moment on this beat right now.” (16:43)

Most Memorable Quotes (Speaker & Timestamp)

• “Kevin Warsh is a Fed insider turned critic. He is an establishment Republican turned Trump supporter.”
  — Nick Timiros (01:00)
• “What the Fed needs is more robust discussion of ideas, less groupthink.”
  — Kevin Warsh (08:32)
• “I have no doubt he’ll go down as one of the great Fed chairman, maybe the best. And then he added this line … On top of everything else, he is central casting.”
  — Nick Timiros on Trump’s remarks (08:57)
• “You know, the Fed is like an aircraft carrier. It can turn, but it can’t turn on a dime. There are 11 other people who are going to vote on interest rates. Warsh is going to have to build a consensus with his colleagues, and that’s going to take time.”
  — Nick Timiros (15:12)

Important Timestamps

• 00:16 — Announcement: Kevin Warsh named as Fed Chair
• 01:00 — Overview: Warsh’s political evolution
• 03:38 — Warsh’s Fed board appointment
• 04:19–04:48 — Warsh’s post-2011 critique of the Fed
• 05:17 — 2017 Chair selection and Trump’s rationale
• 06:25 — Warsh’s change in rhetoric regarding monetary policy
• 07:10 — Warsh on Fox News about Fed’s track record
• 08:32 — Warsh on the need for more open debate at the Fed
• 08:57 — Trump’s “central casting” remarks
• 09:42 — Economic problems Warsh will inherit
• 11:24 — Senate confirmation complications due to Powell investigation
• 12:49 — Warsh’s changing stance on Fed independence
• 14:28 — Warsh’s “regime change” quote
• 15:06 — Timiros uses aircraft carrier analogy

Final Thoughts

Kevin Warsh’s nomination to helm the Federal Reserve marks a potential turning point both in policy direction and the relationship between the central bank and the executive branch. The episode delivers a rich portrait of Warsh's career and worldview, while underscoring the major economic and political uncertainties he will face as Chair—including his Senate confirmation, Fed independence questions, and the challenge of forging consensus in an uncharted economic landscape.