Opinion
Trump Fed Pick Kevin Warsh Could Shake Up the Central Bank With His ‘Family Fight’ Model.
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By Simon Bowmaker and Paul Wachtel
As seen in: The Conversation
Since President Donald Trump named Kevin Warsh as his choice for Federal Reserve chair on Jan. 30, 2026, financial markets have focused on one question: Is he still the inflation hawk he once was, or is he now more comfortable with the lower interest rates that the president has long demanded?
We have a different take. Drawing on decades of research on central banking and an extended interview with Warsh conducted by one of us (Bowmaker) in 2023 for a forthcoming book on the Fed, we think the real change would be not in interest rates but in how the Fed communicates.
It’s no small matter. In modern central banking, policymakers’ pronouncements often shape the economy as much as their actual decisions.
Read the full The Conversation article.
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Simon Bowmaker is Distinguished Clinical Professor at NYU Stern. Paul Wachtel is Professor Emeritus of Economics at NYU Stern.