Former Fed governor Kevin Warsh has been nominated by Mr Trump to replace current chairman Jerome Powell when his term ends in May. He is thought of as a more conservative-leaning economist with a reputation for being relatively “hawkish” – meaning he typically supports higher interest rates to control inflation. Mr Powell said the move related to evidence he gave about renovation projects at the Fed’s office buildings. The statement prompted central bank bosses around the world, including the Bank of England’s Andrew Bailey, to offer their support to Mr Powell and insist upon preserving the independence of the institution. The Fed, like other central banks, operates independently of the government – meaning it sets interest rate policy without political interference.