Trump nominates Kevin Warsh as next US Federal Reserve chair

US stock futures ease after nomination; Senate confirmation needed

United States stock index futures trimmed some losses on Friday after US President Donald Trump nominated Kevin Warsh as the next Federal Reserve chair.

“I am nominating Kevin Warsh to be chairman of the board of governors of the Federal Reserve system,” Trump said, announcing his latest move to put his stamp on a Fed he has criticised for not lowering interest rates.

The position requires confirmation by the US Senate.

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At 06:51am ET, Dow E-minis were down 162 points, or 0.33%, S&P 500 E-minis were down 29.25 points, or 0.42%, and Nasdaq 100 E-minis were down 146 points, or 0.56%.

Warsh is seen as a comparatively moderate figure, one of the less radical choices, and notably cautious about deploying heavy monetary stimulus despite his preference for lower rates.

Read More: Instant View: Fed holds rates steady as expected, but sees elevated inflation

A lawyer and distinguished visiting fellow in economics at Stanford University’s Hoover Institution, Warsh has said the president is right to press the central bank for steep interest-rate reductions and has criticised the Fed for underestimating the inflation-busting potential of productivity growth supercharged by artificial intelligence.

He has also called for a broad overhaul of the central bank that would slim its balance sheet and ease bank regulations.

Trump’s nomination of Powell’s successor, who must be confirmed by the Senate, comes amid unprecedented presidential efforts to exert control over the Fed.