US EditionIBM executive praises Trump’s Federal Reserve chair pick
Gary Cohn highlights Warsh's crisis experience and traditionalist views as key strengths while critics warn the nomination risks Federal Reserve independence amid Trump's rate cut pressures.
- On Sunday, IBM Vice Chairman Gary Cohn endorsed President Trump's nominee Kevin Warsh, calling him highly qualified and restorative of traditional Fed norms; the U.S. Senate must confirm the nomination.
- Amid months of criticism of the Fed, Jerome Powell revealed earlier this month that the Fed received subpoenas threatening him with criminal charges, while Sen. Thom Tillis vowed to oppose nominees until the legal matter is resolved.
- Cohn recalled Warsh's role in the 2008 crisis, saying `He was instrumental in that crisis`, and highlighted his recent work with Stanley Druckenmiller and at the Hoover Institution.
- Seen as a safe pick by markets, Warsh will focus on interest-rate policy, with Cohn saying `There is a pressure right now for interest rates to go lower` and small cuts expected this year.
- On the regulatory front, Cohn said Warsh "is a traditionalist, believing that we need strong regulation in the United States" and will look to sell down the Fed's large balance sheet.
27 Articles
27 Articles
Trump's Fed nominee sparks global sell-off
Market participants continue to view gold prices as being in a long-term uptrend, despite recent volatility triggered by US President Donald Trump's confirmation of Kevin Warsh as his nominee for the next Federal Reserve chair.
The arrival of banker Kevin Warsh, a friend of the Trump clan, at the head of the US Federal Reserve will be under strong tension.
What Fed nominee Kevin Warsh’s former colleagues told us about his leadership style
Former Federal Reserve Gov. Kevin Warsh Bloomberg/Getty Images President Donald Trump nominated Kevin Warsh to succeed Jerome Powell as Federal Reserve chair. Former colleagues described Warsh as a consensus-builder. The next chair will have to navigate pressure from Trump to cut interest rates as well as divisions within the Fed. Don’t expect Kevin Warsh to be a bomb-thrower. Several longtime observers of the Federal Reserve told Business Insi…
‘America First’ Fed? Why China economists doubt Trump’s pick can boost US dollar
US President Donald Trump’s nomination of Kevin Warsh to head the Federal Reserve is unlikely to support a sustained rebound in the US dollar despite the possibility of short-term relief, Chinese economists said. Persistent doubts about the Fed’s autonomy during Trump’s second term could cap any durable recovery, as policy appeared increasingly geared towards domestic goals at the expense of the US dollar’s role as a global public good, they add…
Trump's nominated new head of the US Central Bank, Kevin Warsh, stands for a change of direction in American monetary policy. His expected stability orientation could benefit those who did not benefit from low interest rates.
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