President Donald Trump announced his selection of Kevin Warsh as the nominee to succeed Jerome Powell as chair of the Federal Reserve when Powell's term concludes in May 2026. The nomination has sparked a spectrum of responses from influential financial executives and political figures, reflecting differing perspectives on Warsh's suitability and the potential implications for U.S. monetary policy.
Gary Cohn, vice chair of IBM (NYSE: IBM), publicly endorsed Warsh's nomination over the weekend. Appearing on CBS News' Face the Nation, Cohn depicted Warsh as a "traditionalist" possessing significant institutional experience, notably citing Warsh's tenure on the Federal Reserve’s Board of Governors during the tumultuous period of the 2008 financial crisis. Cohn highlighted that the markets have responded positively to the nomination, referencing a strengthening of the U.S. dollar alongside declines in the prices of gold and silver. He interpreted these movements as indicators of investor confidence in the nomination and its implications for economic policy.
Cohn further forecasted that Warsh is inclined to support between one and two interest rate reductions within the current year, emphasizing that Warsh's approach aligns well with the prevailing economic environment. He stated, "I think he is actually the completely right choice in this period of time," underscoring his confidence in Warsh's capability to lead the Federal Reserve.
In related corporate news, IBM recently reported fourth-quarter revenues amounting to $19.69 billion. This figure surpassed consensus analyst projections, which had anticipated revenue near $19.23 billion, according to Benzinga Pro data, indicating the company's steady performance amid broader economic considerations.
Economists and market strategists have weighed in on Warsh's anticipated policy priorities. Some experts suggest that Warsh’s economic framework may place stronger emphasis on inflation control compared to his predecessor. Neil Dutta from Renaissance Macro Research indicated that Warsh is likely to prioritize keeping inflation in check. Meanwhile, Michael McGowan of Pathstone projected that Warsh may advocate for a reduced footprint of the Federal Reserve in financial markets and a contraction of liquidity provisions.
Despite these endorsements, the nomination has faced opposition from political figures concerned about preserving the Fed’s independence. Senator Elizabeth Warren (D-Massachusetts) issued a warning that President Trump’s appointment reflects an attempt to install loyalists within the central banking system—a move she characterized as undermining the Fed’s autonomy. On the social media platform X, Warren stated, "Donald Trump is trying to take over our nation’s central bank by installing his puppets on its board." She argued that Warsh’s policies would favor Wall Street interests over those of ordinary American families.
Warren urged the Senate to reject Warsh's nomination unless the administration ceases what she called efforts to pressure the current Federal Reserve leadership. She framed the impending confirmation proceedings as a critical test for maintaining institutional independence within the nation's monetary policy apparatus.
Additional voices from the financial community expressed mixed reactions. Michael Saylor, founder of Strategy Inc. (NASDAQ: MSTR), offered support, suggesting that Warsh could become the Federal Reserve's first chairman sympathetic to Bitcoin. Conversely, Claudia Sahm, a former Federal Reserve economist, voiced reservations about Warsh's qualifications and approach. Through commentary on the platform X and a detailed Substack article, Sahm criticized Warsh for being more adept at critiquing policy than proposing viable solutions. She highlighted concerns given Warsh's role during the substantial financial crisis of 2008, questioning his readiness to handle future economic challenges.
Ray Dalio, founder of Bridgewater Associates, acknowledged Warsh’s expertise and reasoned approach to monetary policy. Dalio’s comments, shared on X, emphasized Warsh’s understanding of the risks stemming from policies that are either excessively accommodative or overly restrictive, suggesting a balanced perspective on economic stabilization.
Separately, IBM's stock performance exhibits a strong trend across short-, medium-, and long-term periods, although rating services such as Benzinga's Edge Stock Rankings identify a relatively weak value score. Such financial metrics provide a nuanced view of the company’s market standing amid evolving economic conditions.