Trump picks former US Fed official as next central bank chief

WASHINGTON, Jan 31: President Donald Trump said Friday he would nominate former Federal Reserve governor Kevin Warsh to be the next US central bank chief, a move that has sparked cautious optimism among observers.

The decision caps a highly publicized search for a successor to Fed Chair Jerome Powell, whom the president has repeatedly lambasted for not cutting interest rates more swiftly.

Trump told reporters Friday that Warsh "certainly wants to cut rates," but added that he did not wish to question Warsh on commitments to do so.

"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 Truth Social, announcing his choice.

"On top of everything else, he is 'central casting,' and he will never let you down," Trump added.

Warsh, 55, was the youngest person to serve as a Fed governor, a role he held from 2006 to 2011.

Trump considered Warsh for the top Fed job too during his first presidency, but eventually chose Powell -- a decision he quickly soured on.

Prices of precious metals -- seen as safe haven investments -- sank Friday in a sign that investors were reassured by Trump's choice. The dollar pushed higher. 

"I think markets are broadly happy at the moment," Atlantic Council international economics chair Josh Lipsky told AFP. "It is a pick that another Republican president may have made," Lipsky said.    �"AFP