Trump nominates Kevin Warsh to head the Fed

President Donald Trump has nominated former Federal Reserve (Fed) governor Kevin Warsh to head the US central bank. Warsh is set to replace Jerome Powell when his term ends in May, although the nomination still needs to be approved by the US Senate.

Trump, a longtime critic of the Fed, hopes Warsh will push through a so-called "regime change" in monetary policy, including greater presidential control over the central bank. He called Warsh a "central figure" and said he could rank among the best Fed chairmen.

The Fed is traditionally seen as an independent body that plays a stabilizing role in global financial markets. However, Trump's efforts to influence its decisions call this independence into question.

The situation was further exacerbated by the Justice Department's January decision to launch a criminal investigation into current Fed Chairman Powell. Powell described the investigation as an attempt to pressure the institution to adjust monetary policy to suit the president's wishes.

(reuters, max)