The financial world is about to find out who will steer the $112 trillion global economy. President Donald Trump announced Thursday he'll reveal his pick for Federal Reserve chair Friday morning, with former Fed Governor Kevin Warsh emerging as the clear frontrunner on prediction market Kalshi. The timing couldn't be more charged - markets are already rattled after Microsoft's $357 billion one-day wipeout, and investors are watching every signal from Washington as the current Fed chair's term winds down.
The suspense is nearly over. President Donald Trump said Thursday he'll announce his choice for the next Federal Reserve chair Friday morning, ending months of speculation about who will lead the world's most powerful central bank. Former Fed Governor Kevin Warsh has become the overwhelming favorite on Kalshi, a prediction market platform that's been closely tracking the race.
The timing of Trump's announcement adds another layer of uncertainty to already jittery markets. An administration source told CNBC that Warsh was at the White House on Thursday, the clearest signal yet that he's the likely pick. Trump made his comments on the sidelines of the premiere of the "Melania" film, casually dropping what amounts to one of the most consequential economic appointments of his presidency.
Warsh isn't a household name outside financial circles, but his credentials run deep. He served as a Fed governor from 2006 to 2011, right through the teeth of the financial crisis. At just 35 when he joined the board, he was one of the youngest governors in Fed history. His hawkish views on inflation and skepticism toward extensive monetary stimulus have made him a favorite among conservative economists and Wall Street veterans who've grown wary of the Fed's balance sheet expansion.
The announcement comes as markets are processing a brutal divergence in Big Tech. Microsoft shares cratered 10% Thursday, wiping out $357 billion in market value in its worst single day since March 2020. Investors punished the software giant for disappointing cloud growth and aggressive AI spending plans that raised questions about near-term profitability.
