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It’s far from clear that lowering short-term borrowing costs would trigger a hiring boom that would boost the president’s approval rating.
If confirmed, Kevin Warsh is set to succeed current Fed Chair Jerome Powell. | Mark Lennihan/AP
President Donald Trump’s pick to lead the Federal Reserve would inherit a healthy economy that most Americans believe is about to falter. If he’s confirmed by the Senate, Kevin Warsh may not have the right tools to restore their confidence.
The U.S. economy expanded at a torrid pace last year, and Wall Street analysts believe that will continue as businesses and consumers feel the effects of Trump’s new tax deductions and hefty refund checks. The Federal Reserve Bank of Atlanta estimates that gross domestic product is growing at a robust annual rate of more than 4 percent — double what economists projected for 2026 — and businesses are squeezing much more output from their workers as adoption of artificial intelligence and other new technologies takes hold. The stock market has surged, generating trillions of dollars in new wealth for shareholders.
