President Trump’s announcement Friday that he would nominate Kevin Warsh to succeed Jerome Powell as chair of the Federal Reserve was met by and large with enthusiasm from the commercial real estate sector. That said, CRE finance experts also expressed reservations about the impact of what they predict will be a contentious confirmation process.
At Avison Young, chair and CEO Mark Rose called Warsh “an exceptionally strong choice to lead the Federal Reserve. He brings deep experience, a clear command of the data, and a track record of calling economic turning points with precision. His appointment helps bring much‑needed certainty to the business community at a time when markets have been craving stability. For commercial real estate, that clarity is especially important.”
He continued, “A steady, fact‑driven Fed—one less influenced by political noise—creates the environment our industry needs to continue its recovery and make long‑term decisions with confidence. In both his qualifications and the signal this appointment sends, Warsh’s selection is unequivocally positive for the CRE sector.”
Bob Broeksmit, president and CEO of the Mortgage Bankers Association, said in a statement that Warsh’s prior service on the Fed board gave him a reputation as “a prudent, thoughtful voice on monetary policy.” This background, combined with his private-sector experience at Morgan Stanley, “will be invaluable as he leads the Federal Reserve in what has become an increasingly challenging and complicated mission.
Broeksmit added that MBA looked forward to learning more about Warsh’s views during his upcoming hearing before the Senate Banking Committee. “A balanced regulatory approach and a safe, resilient bank capital framework are essential to a healthy banking system that supports economic growth, job creation, and access to credit for consumers and businesses,” he said.
Co-founding principal of Talonvest Capital, Thomas R. Sherlock told Connect CRE that Warsh’s appointment “increases the likelihood of short-term interest rate reductions later this year. However, borrowers should remember that long-term rates, particularly U.S. Treasury yields that drive permanent financing, move independently. If markets grow concerned about central bank independence or interpret near-term rate cuts as inflationary, long-term yields could rise, making permanent debt more expensive even in a falling short-rate environment.”
At Partner Valuation Advisors, senior managing director Eric L. Enloe expressed mixed feelings. “I am glad that a decision has been made because what the markets and investors want is clarity,” he said. “With President Trump’s pick, there is no longer this game-show type process going on to see who would be President’s Trump’s selection. That is in no way a critique of Mr. Warsh, in that he has deep experience, including at the Federal Reserve and Morgan Stanley.
“On the flip side, I am already sensing that due to the political party tensions, the confirmation process will be contentious, which is not what the markets and investors want (they want clarity),” he continued.
Within a few hours of Trump’s announcement, Sen. Thomas Tillis (R-NC), a member of the Senate Banking Committee, said that although Warsh is “a qualified nominee with a deep understanding of monetary policy,” he would oppose Warsh’s confirmation until the criminal probe of Powell over his testimony to Congress about the $2.5-billion renovation of Fed headquarters is “fully” resolved. Powell has asserted that the investigation arose because the Fed did not move as quickly as Trump wanted on cutting rates.
“Protecting the independence of the Federal Reserve from political interference or legal intimidation is non-negotiable,” Tillis said in a statement on X.
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