Shaker alum Warsh to lead Federal Reserve

A Loudonville native could soon be the most important banker in the world.

Kevin Warsh, a former Federal Reserve governor, was nominated Friday by President Donald Trump to be the next chair of the United States' central banking system. He would begin a four-year term in May, pending Senate confirmation.

Warsh, a 55-year-old Republican, would replace the outgoing Jerome Powell, whose term is expiring.

"I don't think we need continuity when the central bank doesn't have credibility. ... We need regime change at the Fed," Warsh told CNBC in July. "It's not just about a person, it's about an approach to economics."

Warsh, a Shaker High School graduate, was one of 11 candidates interviewed for the position in September and was considered for treasury secretary in November 2024, the New York Times reported. He was also speculated to be an option for chair when the seat was open in 2017.

"This is a very smart nomination," said Congresswoman Elise Stefanik (R-N.Y.) in a release Friday. "Kevin is a longtime friend and he is a fellow Upstate NY native. He is exactly the right leader at this time to right the ship at the Fed and get our economy back on track for the hardworking families and small businesses across America."

"He's very highly thought of," Trump said on Air Force One in June.

Life in Loudonville

Warsh was born in Albany in 1970 to Judith and Robert Walsh. His sister, one of three older siblings, is meteorologist Alexandra Steele.

As a Blue Bison, then known as "Max" or "Kev," Warsh may have looked through a window into his future as a member of the Student Board of Finance. He also participated in Presidential Classroom, which sent him to Georgetown University in Washington, where he toured the city and met political figures.

Warsh was in the school's Honor Society and led its Key Club as president, per his 1988 senior yearbook. For his efforts, he was elected "Teacher's Pet." He did not attend the photo shoot.

In the senior messages of the year book, "Two of Life's Precious People" wrote:

"Kevin, you've got to get your nose out of those staff members butts! BROWNIE!!"

North Colonie Board of Education President Linda Harrison, Warsh's U.S. history teacher, said this is a "proud moment" for the district.

"I always saw him as a thoughtful, confident, and independent thinker. His appreciation and understanding of history made him one of the best students I had in my 35 year teaching career," Harrison wrote in a statement Friday.

"It was clear during Kevin's time at Shaker that he was a highly motivated and ambitious student who would go on to do great things. I believe someone taking one of the highest political offices in this country should have a deep understanding of our nation's history, as well as world history, and Kevin has both."

Warsh was named an inaugural member of Shaker's Alumni Hall of Fame in 2009, nominated by Colonie Town Supervisor Peter Crummey.

Crummey also said he gave a sophomore Warsh his first job.

"While in 10th grade, he helped serve beverages at a house party we hosted," he wrote in a text Thursday. "Industrious and poised even then."

Warsh played soccer and basketball. He was also a member of the tennis team, where he advanced to the state championships, he claimed in a speech given to SUNY Albany's Massry School of Business in 2007.

In the speech, Warsh credited the Capital Region for his success.

"With each passing day, it is more obvious that I learned much of what I need to know about the real economy in my first 18 years here in Upstate New York," Warsh said.

Warsh holds a bachelor's degree in public policy from Stanford University in Stanford, Calif., and a juris doctor from Harvard Law School in Cambridge, Mass.

The banker is married to Jane Lauder, businesswoman and daughter of billionaire Ronald Lauder, who has been a Trump donor since 2016.

The couple lives in New York City.

Warsh, at 35, was the youngest ever to join the Fed board when he was appointed by President George W. Bush in 2006. Former Chair Ben Bernanke wrote that Warsh was a key figure in steering the U.S. through the 2008 financial crisis.

"Don Kohn, my vice chairman, with his long experience at the Fed, and Kevin Warsh, with his many Wall Street and political contacts and his knowledge of practical finance, were my most frequent companions on the endless conference calls through which we shaped our crisis-fighting strategy," Bernanke said in "The Courage to Act: A Memoir of a Crisis and Its Aftermath."

Warsh worked for Morgan Stanley and the National Economic Council prior to his initial Fed term.

After submitting his resignation in 2011, Warsh became a lecturer at the Stanford Graduate School of Business. He also serves on the boards of UPS and Coupang, a Korean e-commerce company. He is also an economic advisor for the Congressional Budget Office and a trustee for the Group of Thirty.

Kevin Warsh's ideology today

The move to appoint Warsh as chair comes amid rising tensions between Trump and Chair Jerome Powell. The tensions hit a boiling point when the Department of Justice subpoenaed the Fed on Jan. 11, and continues as the Supreme Court hears on Trump's power to fire governors.

Warsh has emerged over the last year as a critic of the Fed and Powell, echoing Trump as both insisted the board cut interest rates. The rate remained untouched for most of 2025 before three consecutive cuts late in the year. The board left the rate steady at 3.6% on Wednesday.

"I'm troubled when I see them moving the goal posts. It is very puzzling to me ... how you could think that we should do emergency rate cuts last September, and now all of a sudden you sit there like a hawk," Warsh told CNBC. "That's not good for the institution and I don't think that's good for the economy."

Warsh has previously been described as a hawk by former NEC Director Larry Kudlow, before striking a new tone on the issue.

In the CNBC interview, Warsh said the Fed needs more "robust discussion of ideas," especially regarding inflation.

"Inflation happens when the government prints too much, spends too much, and lives too well," he said.

He also blasted the Fed for its concern for climate change and diversity, equity and inclusion, favoring less "groupthink."

"We're at a transformational moment in U.S. economic history," Warsh told CNBC. "Good policies could advance this U.S. economy ... This is a hugely exciting moment."