"Warsh, if approved by the Senate, will be under close scrutiny from financial markets and Congress given his appointment by a president who has loudly demanded much lower rates than many economists think are justified by economic conditions. Whether he can maintain the Fed's long time independence from day-to-day politics while also placating Trump will be a tremendous challenge. Still, former associates and friends of Warsh say that he has the intellectual heft and people skills to potentially pull it off."
"Trump chose Powell to lead the Fed in 2017 but this year has relentlessly assailed him for not cutting interest rates quickly enough. "I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best," Trump posted on social media Friday. "On top of everything else, he is 'central casting,' and he will never let you down.""
Kevin Warsh's nomination to chair the Federal Reserve could prompt sweeping changes at a central bank that dominates the global economy and markets. If approved by the Senate, Warsh will face close scrutiny from financial markets and Congress because a president has loudly demanded much lower rates than many economists deem justified. Maintaining the Fed's longstanding independence from day-to-day politics while placating the president will be a tremendous challenge. Former associates say Warsh has intellectual heft and people skills to navigate the role. Family connections to the president could reduce White House pressure. Warsh would replace Jerome Powell when his term expires in May.
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