Kevin Warsh has been nominated by President Donald Trump as the next chair of the US Federal Reserve and faces an early test as he seeks to deliver on promises of major policy change. Warsh has pledged to shrink the Fed’s balance sheet and argued that artificial intelligence–driven productivity gains will keep inflation low, creating room for lower interest rates. After three rate cuts late last year, the Fed paused in January amid persistent inflation and a steady labour market, with markets not expecting another cut before June.
