Rep. Jodey Arrington, R-Texas, explains how Fed Chairman Kevin Warsh will ‘restore integrity’ to the Federal Reserve on ‘The Bottom Line.’
IBM Vice Chairman Gary Cohn said President Donald Trump’s Federal Reserve nominee Kevin Warsh is in a unique position to overhaul the central bank, pointing to Warsh’s role during the 2008 financial crisis and his plans to return the Fed to traditional monetary and regulatory practices.
Cohn made the comments Sunday during an appearance on CBS’ “Face the Nation,” where host Margaret Brennan asked him about Trump’s nomination to head the Federal Reserve.
Cohn, who worked closely with Warsh during the financial crisis when he was at Goldman Sachs, said the former Fed governor understands how markets react under stress and is willing to roll back unconventional policies, including an overstretched balance sheet, while focusing the central bank on its core economic mission.
“I think we’re very fortunate to have Kevin nominated,” Cohn told Brennan. “Kevin has a unique background that comes in handy.”
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Kevin Warsh, former governor of the US Federal Reserve, speaks during the annual conference of the American Economic Association (AEA) in Chicago, on Jan. 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 time.
“What I mean by that is when the banks were under pressure, and we saw a lot of bank consolidation, we saw a lot of assets being moved into the system, Kevin was the point person at the Fed,” Cohn said. “He was part of all those conversations.”
“I truly believe without Kevin’s knowledge and without Kevin being there, we would not have come out of the crisis of 2008 as we did,” he said. So, you are highly trained.
TRUMP CHOOSES KEVIN WARSH TO SUCCEED JEROME POWELL AS FEDERAL RESERVE CHAIRMAN
Kevin Warsh attends lunch during the Allen & Co. Conference. Media and Technology in Sun Valley, Idaho, 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, which includes focusing on monetary policy rather than non-monetary issues.
“There’s pressure right now for interest rates to come down. I think you’re probably going to follow through with one to two cuts this year,” Cohn said. “Kevin is also of the opinion that the Fed shouldn’t have a large balance sheet. You know, the Fed went in and bought too many securities … I think Kevin will bring that back.”
Cohn said Warsh is a traditionalist who supports strong regulation that allows markets to grow while making sure consumers get money.
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President Donald Trump moves as he speaks during the Asia-Pacific Economic Cooperation CEO Summit at the Gyeongju Arts Center in Gyeongju on Oct. 29, 2025. (Anthony Wallace/AFP/Getty Images/Getty Images)
“I think he is the right choice at this time,” he said.
Trump officially announced Warsh’s nomination on Friday, ending months of speculation about who he would pick to lead the central bank.
Announcing the election, Trump said he has known Warsh for years and expressed confidence that he will be among the most successful Fed chairmen in history.
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Warsh must still be confirmed by the Senate before taking one of the most powerful positions in US 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, building a reputation in Republican economic policy circles. Bush appointed him to the Fed’s 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 roles, including serving as the Shepard Family Distinguished Visiting Fellow in Economics at the Hoover Institution and a visiting scholar at Stanford University’s Graduate School of Business. He also serves on the board of UPS and as a trustee of several prominent economic policy organizations.
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Warsh has been a familiar figure in past Trump administration debates, as he was considered to replace Janet Yellen as Fed chair in 2017, when Trump chose Jerome Powell. He was also considered to serve as treasury secretary last season before Trump nominated hedge fund manager Scott Bessent.
Eric Revell of FOX Business contributed to this report.
