Core Viewpoint - President Donald Trump has nominated Kevin Warsh, a former Federal Reserve governor, to succeed Jerome Powell as the chair of the central bank, expressing confidence in Warsh's capabilities [1]. Group 1: Nomination Details - Trump announced the nomination on Truth Social, stating he believes Warsh will be one of the greatest Fed Chairmen [1]. - Warsh was previously considered for the position eight years ago when Trump selected Powell instead [1]. - Warsh served on the Federal Reserve's Board of Governors from 2006 to 2011 [1]. Group 2: Market Reactions - Online betting markets initially favored Kevin Hassett as the front-runner to replace Powell, with Hassett's odds peaking at around 84% in December [2]. - Since the beginning of the new year, betting odds have shifted in favor of Warsh, with trading volumes for bets on the Federal Reserve Chair exceeding $307 million on Polymarket and $90 million on Kalshi [2]. Group 3: Confirmation Challenges - Warsh's nomination requires Senate confirmation, which may face obstacles due to a GOP lawmaker's intention to block any Fed nominees until the U.S. Justice Department concludes its investigation into Powell [3]. - Senator Thom Tillis has stated that the holds on Fed nominations will remain until the investigation regarding Powell's alleged false statements about a $2.5 billion renovation of the Federal Reserve's headquarters is resolved [3][4]. Group 4: Background Context - Powell's term is set to end in May, but he could remain on the board until 2028, which would be a significant deviation from precedent [4]. - Trump has been critical of Powell's decisions, and the Department of Justice has launched an investigation into Powell, who has denied any wrongdoing [4][5]. - Powell has emphasized the importance of the Federal Reserve's independence in setting interest rates based on economic conditions rather than political pressure [5].