Mr. Warsh is known as a consensus builder, skills he will need if he is to head the Federal Reserve when President Trump is demanding rock-bottom rates.

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

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.

Andrew Slimmon, Morgan Stanley senior portfolio management, joins 'The Exchange' to discuss Trump's nomination to head the Federal Reserve, Kevin Warsh.