Trump Nominates Kevin Warsh to Lead Federal Reserve Amid Economic Shifts
Washington D.C. - President Donald Trump nominated Kevin Warsh to lead the U.S. Federal Reserve, replacing current chairman Jerome Powell when his term ends in May, according to BBC Business. The announcement came amid significant shifts in the global economy, including rising gold prices and technological advancements in artificial intelligence.
Warsh, a former Fed governor and outspoken critic of the central bank, was previously considered for the position during Trump's first term, BBC Business reported. Trump declared on social media that Warsh "is 'central casting' and he will never let you down," according to BBC Business. The appointment signals a potential shift towards lower interest rates, a move Trump has advocated for, according to BBC Business. The appointment also comes amid "mounting worries about the Fed's independence," according to BBC Business, following Trump's increasing attacks on Powell in recent months.
The nomination coincides with fluctuations in the commodities market. Gold prices recently surged past $5,000 per ounce, briefly hitting $5,500, before falling sharply, according to BBC Business. Silver and platinum prices experienced similar rises. According to BBC Business, investors have been piling money into the safe haven asset amid rising global political uncertainty. Trump's trade policies, which have upset global trade, are a contributing factor, according to BBC Business.
Meanwhile, in the technology sector, Tesla announced a shift in focus towards artificial intelligence (AI) and robotics, according to BBC Technology. The electric vehicle (EV) maker reported a 3% decline in annual revenue in 2025, with profits falling 61% in the last three months of the year, according to BBC Technology. Tesla plans to end production of its Model S and Model X vehicles, repurposing its California manufacturing plant to produce its line of humanoid robots, known as Optimus, according to BBC Technology. This shift comes as China's BYD overtook Tesla as the world's biggest EV maker in January, according to BBC Technology.
Facebook-owner Meta is also significantly increasing its investment in AI, according to BBC Technology. Meta plans to spend up to $135 billion this year on AI projects and infrastructure, nearly double the $72 billion spent last year, according to BBC Technology. Meta boss Mark Zuckerberg said he is expecting "2026 to be the year that AI dramatically changes the way we work," according to BBC Technology. In the last three years, the technology giant has spent roughly $140 billion in an attempt to get ahead of the AI boom, according to BBC Technology.
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