Warsh was under consideration when Trump was making his first Fed chairman pick during his first administration. Trump ultimately chose Powell in 2018, but with his term expiring in May, the door opened for Warsh again.

Warsh has been cited in political and financial circles as a possible nominee for high-ranking economic posts, including Treasury Secretary, due to his experience working on Wall Street, in government, and academia. 

Originally from Albany, New York, Warsh attended Stanford University and Harvard Law School. He launched his financial career in the mergers and acquisitions division of investment banking giant Morgan Stanley, rising to executive director. 

In 2002, Warsh became special assistant to the president for economic policy and executive secretary of the National Economic Council under Former President George W. Bush, advising on domestic finance, banking regulation, and securities policies. 

In 2006, at age 35, Warsh was appointed to the Federal Reserve Board of Governors, becoming one of the youngest members in the institution’s history. 

Although Warsh faced criticism for his age, he was confirmed by the Senate in a voice vote, meaning no individual senator voted against Warsh’s nomination.

Warsh served on the Fed’s board from 2006 to 2011, a tenure that included the 2008 financial crisis and the ensuing Great Recession. 

He acted as the Fed’s primary liaison to Wall Street and represented the central bank before the Group of Twenty. 

Warsh generally stayed with the pack on voting decisions at the Fed, but was a staunch critic of spending decisions in response to the Great Recession. 

He was known for his outspoken stance on inflation and later faced criticism, pushing his colleagues to consider the risks of inflation and to scale back emergency support sooner. In retrospect, inflation didn’t outweigh the unemployment crisis because inflation remained low during that period. 

Warsh left the Fed in 2011 during the Obama administration and was increasingly critical of the central bank’s post-crisis policy trajectory. In recent history, he has advocated what he calls “regime change” at the Fed, aligning with Trump’s criticism that interest rates were kept too high. 

Financial experts have said that Warsh’s appointment makes sense for the times.

David Bahnsen, chief investment officer of The Bahnsen Group, told CNBC’s The Squawk Box that Warsh has the respect of financial markets and ideologies that align with Trump’s vision.

“There was no person who was going to get this job who wasn’t going to be cutting rates in the short term. However, I believe longer term, he will be a credible candidate,” Bahnsen said. 

Trump has made cutting interest rates a central priority aimed at lowering borrowing costs to further stimulate domestic investment and accelerate overall economic growth. The Federal Reserve cut rates for the first time since Trump returned to office in September. Until the most recent decision to keep rates steady in January, the central bank had continued to cut rates each month since then.

Warsh offers something unique as he’s an institutionalist whose market fluency and skepticism of government deficits align with Trump’s economic priorities. His belief that the AI revolution offers greater economic benefits aligns with the Trump administration’s growing use of AI. 

TRUMP NOMINATES KEVIN WARSH TO BE NEXT FED CHAIRMAN

Warsh has managed to steer clear of controversy and ethical scandals in his financial career. 

Most critiques around him center on his close ties to donor networks, including his marriage to Jane Lauder, granddaughter of Estee Lauder’s co-founders and daughter of billionaire Ronald Lauder, a prominent Republican donor.