Carney, Macklem Congratulate Warsh on Federal Reserve Nomination

(Bloomberg) — Canadian Prime Minister Mark Carney and Bank of Canada Governor Tiff Macklem congratulated Kevin Warsh on his nomination to chair the Federal Reserve.

Carney, who ran the Bank of Canada during the 2008 financial crisis when Warsh was on the Fed board, heaped praise on social media.

“Kevin Warsh is an excellent choice to lead the world’s most important central bank at this critical time,” said Carney, who also serves as governor of the Bank of England.

U.S. President Donald Trump announced Friday that he plans to nominate Warsh as the next Fed chairman. Warsh served on the central bank’s board of directors from 2006 to 2011 and previously advised Trump on economic policy.

Macklem also offered his congratulations in a statement emailed to Bloomberg News.

“I worked with Kevin when he was a Federal Reserve governor and I look forward to working with him again,” Macklem said.

Macklem served as a vice-president at the Bank of Canada from 2004 to 2007 and as a senior vice-president from 2010 to 2014. He was appointed president in 2020.

Last year, Macklem repeatedly voiced his support for current Fed Chairman Jerome Powell, who is under political pressure from Trump to lower interest rates. Warsh will replace Powell when his term ends in May.

After Canada’s central bank kept interest rates steady on Wednesday, Macklem reiterated the importance of an independent Federal Reserve. He noted Canada’s deep economic and financial ties with the United States.

“Our financial markets are particularly integrated with the United States, so this will particularly impact us,” Macklem said.

“He’s doing a good job of guiding the Fed based on evidence and facts,” Powell added. “I hope it stays that way.”

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