WASHINGTON: Donald Trump nominated Kevin Warsh, a former Federal Reserve governor, to be the next US central bank chief, the US president announced Friday on social media.
Trump's decision caps a closely watched search for a successor to Fed Chair Jerome Powell, whom the president has repeatedly lambasted for not cutting interest rates more swiftly.
"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 wrote on his Truth Social platform.
"On top of everything else, he is 'central casting,' and he will never let you down."
The president's selection ends a race that had narrowed to four contenders -- Warsh; current Fed governor Christopher Waller; Rick Rieder of BlackRock; and Trump's top economic adviser Kevin Hassett.
But Warsh, if confirmed by the US Senate, will take the helm at a time when the Trump administration has sharply escalated pressure on the central bank.
Trump's moves have sparked worries about risks to the Fed's independence from politics, which experts warn could have ramifications for the world's biggest economy.
Warsh, who is from New York, has recently stepped up his criticism of the Fed, endorsing many of the policy positions of Trump and his administration.
He used to be a mergers and acquisitions banker at Morgan Stanley.
In Trump's first term, he considered Warsh for the Fed Chair position -- replacing Janet Yellen -- but eventually chose Powell.
As Trump continues to call for lower interest rates to boost the economy, all eyes will be on how Warsh defends the bank's independence in the face of politics.
Already, Trump has sought to fire Fed Governor Lisa Cook over claims of mortgage fraud, sparking a legal battle likely to prove crucial in determining how much discretion the president has when it comes to removing key central bank officials.
The Trump administration has also launched an investigation into Powell over renovations at the Fed's headquarters, in a probe that Powell has slammed as a threat to the bank's independence.