Canadian Prime Minister Mark Carney has expressed strong support for President Donald Trump‘s nomination of former Federal Reserve Governor Kevin Warsh to succeed current Fed Chairman Jerome Powell. Trump made the announcement on January 30, 2026, via a post on Truth Social, asserting that Warsh will be remembered as one of the “GREAT Fed Chairmen, maybe the best.”
In a statement shared on X, Carney described Warsh as “a fantastic choice to lead the world’s most important central bank at this crucial time.” The endorsement from Carney, a member of the Liberal Party of Canada, highlights his recognition of the critical role the Federal Reserve plays in global economic stability.
Background on Warsh and Carney’s Relationship
Warsh served on the Fed’s Board of Governors from 2006 to 2011 and is currently a distinguished fellow at the Hoover Institution and a lecturer at the Stanford Graduate School of Business. Carney and Warsh have maintained a professional relationship for several years, with Carney having previously recruited Warsh to oversee a review of the Bank of England’s transparency in 2014.
Carney, who served as the governor of the Bank of England from 2013 to 2020, has positioned himself as a significant figure in international finance. His recent remarks during a trip to Beijing, where he discussed a “new world order,” have garnered attention. During that visit, he praised the leadership of Chinese President Xi Jinping and the rapid development of Canada-China relations, indicating a strategic partnership focused on energy, agri-food, and trade.
Political Tensions and Future Implications
The endorsement comes amid rising tensions between the United States and Canada, particularly regarding trade policies. In a post dated January 24, Trump threatened to impose a 100% tariff on Canadian goods if the nation proceeds with a deal with China. This statement reflects the complexities of international diplomacy as the two leaders navigate their respective national interests.
While Warsh has yet to comment publicly on his nomination, his extensive experience in economic policy positions him as a potentially influential figure in shaping U.S. monetary policy. As the Federal Reserve plays a pivotal role in managing economic growth and inflation, Warsh’s leadership could have far-reaching implications for both national and international markets.
The appointment of Warsh will be closely watched, as his approach to monetary policy could reflect a significant shift from the current leadership under Powell. With Carney’s endorsement and the ongoing geopolitical landscape, Warsh’s confirmation is anticipated to spark discussions about the future direction of the Federal Reserve.
