President Trump Announces Nominee for Next Fed Chair
February 2, 2026
Last Friday, President Trump nominated Kevin Warsh to succeed Federal Reserve (Fed) Chair Jerome Powell in May this year,1 concluding an eventful first month of 2026 for financial markets. While Warsh is seen as a viable candidate to lead the Fed, his path through Senate confirmation faces obstacles. Members of the Senate Banking Committee have signaled they prefer to see the Department of Justice’s investigation into Chair Powell resolved before proceeding with the confirmation process for Warsh.
Last week marked the first Federal Open Market Committee (FOMC) meeting of the year. Policymakers left interest rates unchanged for the first time since July and struck a hawkish tone with a more constructive view on economic activity and labor market conditions.2 On the corporate front, mega-cap companies Microsoft (MSFT), Apple (AAPL) and Meta Platforms (META) reported earnings, with all three continuing to invest heavily in artificial intelligence (AI) infrastructure. January concluded with strong performance across risk assets. Major U.S. equity indices ended the month in the green.3 In fixed income, high-grade corporates, mortgage-backed securities and high-yield corporates each generated positive total and excess returns.4
The coming week features several key U.S. economic data releases, including the Institute of Supply Management (ISM) Manufacturing and Services Indices, the Job Openings and Labor Turnover Survey (JOLTS) and the non-farm payroll report.5 In corporate earnings, reports from mega-cap companies Alphabet (GOOGL) and Amazon (AMZN) will be key highlights.6
Sources:
1The Wall Street Journal – Trump Picks Kevin Warsh as Fed Chair; 1/30/26
2The Wall Street Journal – Fed Holds Rates Steady for First Time Since July; 1/28/26
3,4,6Bloomberg
5MarketWatch – Economic Calendar; as of 2/2/2026
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