President Donald Trump has selected Kevin Warsh to assume leadership of the Federal Reserve when Jerome Powell’s term concludes in May. Warsh, who previously served as a Fed governor, is expected to advocate for reduced interest rates.

Trump’s nomination follows a period of intensified scrutiny regarding the Fed’s independence, particularly due to the President’s public criticisms of Powell, focusing on his reluctance to initiate rapid interest rate cuts.

Warsh, recognized for his critical views on the Fed, has called for a change in its operational strategies. His nomination could face delays as it requires Senate approval.

The Washington economic landscape will be watching closely to see how Warsh navigates the delicate balance between the Federal Reserve's independence and the administration’s monetary policy goals.