What can we expect from incoming Federal Reserve President Kevin Warsh? I hinted in Saturday’s X post that I would be discussing Warsh’s situation. President Donald Trump announced Friday that he has nominated Warsh, a former Federal Reserve board member from 2006 to 2011, to replace Jerome Powell as central bank chairman. Powell, whose term as Fed chief ends in May, has been Trump’s punching bag on interest rates for much of the time since he appointed him during his first term in the White House. As for Warsh, I don’t know the guy. Back in 2007, I knew Mr. Warsh was on the side of the hawks as a Fed director, but back then I was now clairvoyantly thinking, ranting, “They don’t know anything.” But when the Fed’s actual report was released five years later, it was Dennis Lockhart of the Atlanta Fed who mocked my incredulity that anyone at the Fed would continue to tighten in 2007 — the worst period for tightening except for 1931.The report says there was “laughter” in the room after Lockhart berated me, but Mr. Warsh didn’t repeat it. But that’s just personal. work? Warsh seems pragmatic, as our economy is driven by the construction of massive data centers and the energy luxuries that come with them. When you build a $30 billion to $50 billion data center, you’re going to hire a lot of people, even if the finished data center doesn’t have that many people working. Warsh, who hit the television scene over the summer in pursuit of the Fed job, appeared on CNBC’s “Squawk Box” on July 17. He sounded like he was in sync with the president’s desire to lower interest rates. “AI will reduce costs in just about everything,” Warsh explained. “We could be on the cusp of a productivity boom. If I were president, I’d worry that they (the Federal Reserve, led by Powell) don’t realize that. They might think economic growth will somehow become inflationary. I think we’re in the early stages of structural price decline.” In that interview, Mr. Warsh harshly criticized Mr. Powell for sticking to an outdated economic model. Oddly enough, in 2007 Warsh wanted to tighten monetary policy, keep interest rates high and reduce the money supply to cool the economy, but now he wants to loosen monetary policy and cut interest rates. Rather than criticize it, I just note it as odd. Prior to his time at the Federal Reserve, Mr. Warsh worked on Wall Street in Morgan Stanley’s M&A department since 1995. After leaving the Fed, Mr. Warsh went to work for legendary investor Stanley Druckenmiller, who strongly advocated for Mr. Warsh to become Fed chief and has since praised Mr. Trump’s decision. Here’s what I’m worried about. If you align yourself with Trump, he will protect you no matter what. But when you disagree with him, he more or less forcefully polices, embarrasses, and ridicules posts from his law firm, the Department of Justice, and Truth Social. Mr. Powell has had to endure everything from a Justice Department criminal investigation into his comments to Congress about the Federal Reserve’s building renovations. Chairman Powell said the investigation was in retaliation for the president’s failure to follow instructions on monetary policy. Warsh is a private citizen and is married to Jane Lauder, granddaughter of the billionaire cosmetics giant Estée Lauder. This person is a really private person. It may not matter to you if the president attacks you with a salvo of vile name-calling. If you have very thick skin, like Mr. Powell, you may be able to ignore it. The president does not understand the power of his words and posts. He doesn’t know how devastating it is to be poked. Because he thinks we are all what he is and that is what we deserve. No one is immune. Before becoming the head coach of the Eagles, I had the opportunity to address the team at training camp. Every year, I spent two minutes telling them that they should never read the newspaper or listen to talk radio on the street. I said they would all be considered losers in the press. They will be seen as lazy idiots not worth buying a ticket. I heard that the management team liked my pep talk. No one should have had to endure what happened to Mr. Powell at the Fed. I think it was very embarrassing for his family, yet he never showed it. I spoke highly of him. Could Warsh be just as quietly strong? There’s no point in saying bad things. it’s not. The president’s reprimand based on policy makes perfect sense. Instigation from the White House? Beyond all reason. So many norms were torn apart. In a July interview with CNBC, Warsh mentioned the name-calling, but said it was ultimately a performance issue. “It’s very common to blame the president because he’s so mean to them[the Fed]. Well, most of the Fed’s mistakes are because of the choices the Fed has made.” Warsh said that while he believes the Fed’s independence with respect to monetary policy is “essential,” “that doesn’t mean the Fed is independent in everything it does.” He criticized the current Fed for pivoting to issues such as climate change and diversity, equity, and inclusion (DEI) that are unrelated to its dual mandate of promoting maximum employment and price stability. When I was a child, my father admired former President Harry S. Truman. One reason was that Truman’s daughter gave voice and piano recitals at Constitution Hall. The next day, a Washington Post critic gave her a damning review. Truman then wrote a letter and mailed it himself. Among other things, it read, “I hope to see you someday. When I do, I’ll need a new nose, a ton of beefsteak for my black eye, and probably a lower supporter.” This was considered one of the most outrageous things a president had ever done. And it was adorable. That made him adorable. I’ve never heard anything so critical from a president. Until now. This president’s comments are not endearing. They are destructive. They can get hurt. I hope the next Fed chief doesn’t receive any, but if he does, he will be able to handle the noise and do his job well. (For a complete list of Jim Cramer Charitable Trust stocks, see here) As a subscriber to Jim Cramer’s CNBC Investment Club, you will receive trade alerts before Jim makes a trade. 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