WASHINGTON (TNND) — President Donald Trump nominates former Federal Reserve governor Kevin Warsh to be the next chair of the Fed and replace Jerome Powell when his term expires in May.

Trump has continued to air his displeasure with Powell for not cutting interest rates quickly enough.

"The guy is just incompetent," Trump said of Powell in December. "There is nothing you can do about it. He's just a very incompetent man, but we're probably going to bring a lawsuit against him."

On Wednesday, Powell kept interest rates steady at 3.6%. Cuts were made three times in 2025.

"I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best,” Trump wrote on Truth Social. “On top of everything else, he is ‘central casting,’ and he will never let you down.”

Ahead of the annoucement, Powell declined to comment about his potential replacement but did go into detail when asked about any advice he'd share with his potential successor.

"Honestly, I'd say a couple of things. One is stay out of elected politics. Don't get pulled into elected politics. Don't it do it," Powell said.

"Another is our window into Democratic accountability is Congress -- and it's not a passive burden for us to go to Congress and talk to people. It's an affirmative, regular obligation," he added. "If you want Democratic legitimacy, you earn it by your interactions with our elected overseers. And so, it's something you need to work hard at. I have worked hard at it."

The appointment for Warsh, who was a member of the Fed's board from 2006 to 2011, will require Senate confirmation. He was the youngest governor in history when he was appointed at age 35. He is currently a fellow at the right-leaning Hoover Institution and a lecturer at the Stanford Graduate School of Business.

Similar to Trump, Warsh has been critical of the Fed in recent months, calling for "regime change" and assailing Powell for engaging on issues like climate change and diversity, equity and inclusion.

In a July interview on CNBC, Warsh said Fed policy “has been broken for quite a long time.”

“The central bank that sits there today is radically different than the central bank I joined in 2006,” he added. By allowing inflation to surge in 2021-22, the Fed “brought about the greatest mistake in macroeconomic policy in 45 years, that divided the country.”

In August, Trump tried to fire governor Lisa Cook from her position based on allegations of mortgage fraud.

Cook fired back with a lawsuit and the Supreme Court appeared inclined to let her keep her job while the suit is resolved.

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Editor's note: The Associated Press contributed to this article.