Washington: U.S. President Donald Trump has chosen Kevin Warsh, a former Federal Reserve board member, to replace Jerome Powell as chairman of the Federal Reserve when Powell's term expires in May. This decision signals a potential shift in the Federal Reserve's approach to monetary policy, aligning with the White House's desire for greater influence over interest rate decisions.

According to Thai News Agency, if Warsh successfully navigates the anticipated rigorous Senate confirmation process, he will assume leadership of the institution responsible for setting credit costs in the United States, a role with far-reaching global implications. Warsh, who was previously known for his hawkish stance on inflation during his tenure at the Fed, has recently advocated for lowering interest rates, a position that aligns with President Trump's economic preferences.

President Trump announced his decision through social media, expressing strong confidence in Warsh's capabilities, rooted in their long-standing relationship. Trump praised Warsh's suitability for the role, predicting he would excel as the Federal Reserve chairman. Notably, Warsh's nomination received backing from influential figures such as his father-in-law Ron Lauder, a prominent Trump supporter, and billionaire investor Stanley Druckenmiller, both of whom played advisory roles in the selection process.

Despite his endorsement, Trump maintained that he did not explicitly ask Warsh about his willingness to reduce interest rates, emphasizing the importance of maintaining the nominee's independence. Nonetheless, Trump conveyed a belief that Warsh would likely advocate for lower interest rates, with the Senate confirmation being the next critical phase, where partisan support remains closely divided.