Rep. Jodey Arrington, R-Texas, explains on “The Bottom Line” how Fed Chairman Kevin Warsh will “restore integrity” within the Federal Reserve.
IBM Vice Chairman Gary Cohn said Kevin Warsh, President Donald Trump’s Federal Reserve nominee, is uniquely positioned to overhaul the central bank. He points to Warsh’s hands-on role during the 2008 financial crisis and his plans to return the Fed to traditional monetary and regulatory norms.
Cohn made the comments Sunday during an appearance on CBS’ “Face the Nation,” where host Margaret Brennan asked him about Trump’s pick to lead the Federal Reserve.
Cohn, who worked closely with Warsh at Goldman Sachs during the financial crisis, said the former Fed governor understands how markets react under stress and is willing to roll back unconventional policies, including a bloated balance sheet, while focusing the central bank on its core economic mission.
“I think we’re very fortunate that Kevin was nominated,” Cohn told Brennan. “Kevin has a unique background as chairman.”
WHO IS KEVIN WARSH, TRUMP’S CHOICE TO SUCCESS JEROME POWELL AS FED CHAIR?
Kevin Warsh, former governor of the U.S. Federal Reserve, speaks during the American Economic Association (AEA) annual conference in Chicago, January 6, 2017. (Daniel Acker/Bloomberg via Getty Images/Getty Images)
Cohn pointed to Warsh’s time at the Federal Reserve during the 2008 financial crisis, describing him as “instrumental” during that period.
“What I mean by that is when the banks were going through stress and we saw a lot of bank mergers, we saw a lot of assets being moved around the system, Kevin was the point person at the Fed,” Cohn said. “He was involved in all those discussions.”
“I truly believe that without Kevin’s expertise and without Kevin’s presence, we would not have come out of the 2008 crisis as well as we did,” he said. “So he is very highly qualified.”
TRUMP NOMINATES KEVIN WARSH TO SUCCESS JEROME POWELL AS FEDERAL RESERVE CHAIRMAN
Kevin Warsh walks to lunch during the Allen & Co. Media and Technology Conference in Sun Valley, Idaho, on Wednesday, July 9, 2025. (David Paul Morris/Bloomberg via Getty Images/Getty Images)
Cohn expressed confidence that Warsh would return the Federal Reserve to its traditional role, including focusing on monetary policy rather than non-financial issues.
“There’s pressure right now to cut rates. I think he’ll probably continue with the one to two cuts this year,” Cohn said. “Kevin also believes that the Fed shouldn’t have a big balance sheet. You know, the Fed has been buying huge amounts of securities… I think Kevin will reverse that.”
Cohn said Warsh is a traditionalist who supports strong regulations that grow markets while ensuring consumers have access to capital.
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President Donald Trump gestures as he speaks during the Asia-Pacific Economic Cooperation CEO Summit at the Gyeongju Arts Center in Gyeongju on October 29, 2025. (Anthony Wallace/AFP/Getty Images/Getty Images)
“I think he’s actually the right choice at this time,” he said.
Trump formally announced Warsh’s nomination on Friday, ending months of speculation over who he would choose to lead the central bank.
In announcing the pick, Trump said he had known Warsh for years and expressed confidence that he would be among the most successful Fed chairs in history.
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Warsh must still be confirmed by the Senate before taking over one of the most powerful positions in American economic policymaking.
Before joining the Federal Reserve, Warsh worked in the private sector at Morgan Stanley and later served in the administration of President George W. Bush, where he built a reputation in Republican economic policy circles. Bush nominated him to the Fed Board of Governors in 2006, making him the youngest Fed governor in history at age 35.
Since leaving the Fed in 2011, Warsh has held academic and advisory positions, including as a Shepard Family Distinguished Visiting Fellow in Economics at the Hoover Institution and as a visiting scholar at Stanford University’s Graduate School of Business. He also serves on the board of directors of UPS and is a trustee of several prominent economic policy organizations.
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Warsh was a well-known figure in previous Trump administration deliberations after considering replacing Janet Yellen as Fed chair in 2017, when Trump chose Jerome Powell instead. He was also considered for Treasury secretary last fall, before Trump appointed hedge fund manager Scott Bessent.
