Warsh is an established figure in Republican economic circles whose selection to head the world’s most important central bank is likely to be well-received by GOP policymakers.

Kevin Warsh’s long-held desire to slash the Federal Reserve’s balance sheet is likely to clash with Donald Trump’s relentless calls for the central bank to depress long-term borrowing costs, big fund managers have said.

Warsh has recently advocated for lower rates, but a smaller Fed balance sheet.