US President Donald Trump has picked Kevin Warsh to lead the Federal Reserve when Jerome Powell's term ends in May. Warsh, a former Fed governor from 2006 to 2011, is known as a Fed critic and expects lower interest rates soon. Trump announced the nomination on Truth Social, calling Warsh "one of the GREAT Fed Chairmen, maybe the best." The Senate must approve Warsh, which may cause delays. Warsh will manage the Fed during a tense time, as many watch for threats to its independence. Powell angered Trump by not cutting interest rates quickly. He also faces a criminal probe related to testimony about Fed building renovations. Warsh is a 55-year-old economist linked to the Hoover Institution and UPS board. He once favored higher rates but now backs lower ones in the near future. He urges shrinking the Fed's balance sheet to lower short-term rates. Inflation remains above the Fed's 2% target, and job growth is slow but stable. Deutsche Bank economists said, "Warsh will have to convince his colleagues that rate cuts are appropriate this year," which needs signs of weaker labor markets or lighter inflation. Warsh is connected to Trump through marriage to Jane Lauder, daughter of billionaire Ronald Lauder, a Trump supporter. Republican Senator Thom Tillis plans to oppose Trump's Fed nominations until Powell's legal case clears up. Trump has also targeted Fed governor Lisa Cook, accusing her of mortgage fraud; she denies this and the Supreme Court is reviewing the case. Warsh was among four top candidates, alongside Kevin Hassett, Christopher Waller, and Rick Rieder. Experts like Stephen Brown from Capital Economics call Warsh "a relatively safe choice" whose hawkish views may ease fears of Trump influence. The nomination news strengthened the US dollar and pushed gold prices down. Investor Stuart Clark noted Warsh's market respect and said, "Concerns around Fed independence should now be tempered, but Warsh's actions will be closely watched."