Kevin Warsh has sought the top job at the U.S. central bank since President Donald Trump first considered him for the position almost a decade ago. Now that he is in line for the job, the enormity of the challenge ahead of him is clear.
Warsh, who has been nominated to be the Federal Reserve (Fed) chair, faces a three-way test.
To be effective, he must gain the trust of at least three constituencies: the committee of Federal Reserve officials whose votes he will have to win to change interest rates; the financial markets, which can undermine his efforts to reduce borrowing costs if they think he is acting politically; and not least Trump, a former real estate developer with an exquisite sense of just how much difference a cut or increase in interest rates can make for those with large debts, whether they are businesses, households or a government.
"He has to thread that needle," said Raghuram Rajan, an economist at the Univers
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