amna: Today, president trump announced Kevin warsh as his pick to be the next chairman of the federal reserve.

A conservative economist at the Hoover institution, wash is a former advisor to George W. Bush and was a member of the federal reserve's board of governors from 2006 until 2011.

In a post on truth social the president said, "He will go down as one of the great fed chairmen, maybe the best.

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

The president praised his pick this afternoon.

Pres.

Trump: He's got the whole package and I think he's going to do a great job.

Amna: If confirmed by the senate, warsh will succeed current chair Jerome Powell whose term ends in may.

Joining me now is David Wessel, director of the Hutchins center on fiscal and monetary policy at the Brookings institution.

David, welcome back.

Let's start with your brief take on what you make of this selection.

What should we know about Kevin warsh?

>> He is a lawyer, he is not an economist.

He is an ambitious guy in an excellent networker.

He was appointed to the federal reserve board at age 35 by president, younger than anyone else.

He is a man who understands the markets.

He is very good with people.

I think that will serve him well.

And he has sort of changed his stance on monetary policy over the years.

He was generally what is called a hawk, and inflation fighter when he was on the board.

In recent years as he has been campaigning, addition and if you will to be fed chair, he has become more in sync with president trump.

He is very critical of the fed and their staff and he is promising regime change but we don't really know what that means.

Mna: We know the current fed chair has faced taste ready -- steady stream of criticism and insults.

Here is how warsh himself assessed the fed and their work last summer.

>> I think the fed has done a very good job of blaming others for their mistakes.

It has been very popular to blame the president because he is being so mean to them.

Most of the fed's mistakes or because of choices they made.

I strongly believe that 20 years and many things tell us that the independent operation of monetary policy is essential but that does not mean the fed is independent and everything else it does.

Amna: He called for regime change at the fed.

What does this tell us about how Kevin wash might lead the central bank?

>> I think we know he believes the economy is capable of growing fasterthan a lot of economists think because of ai increasing the productivity of the economy.

I think we expect them to be prone to cut interest rates.

In the clip you played, what he is talking about his bank regulation where I think he will be in sync with the deregulatory and sinks -- policies of the trump administration.

And he has been critical of them for being interested in things like climate or inequality.

He thinks the fed should narrow its focus to interest rates, inflation and not anything else.

Mna: When you hear him say the fed isn't independent and everything it does, does that worry you?

>> It doesn't worry me because I think he is talking about things other than monetary policy.

The real question is which Kevin warsh is going to show up?

Is he going to be independent and focused on delivering stable prices and maximum employment and doing what the economy and his staff tells him is essential?

Or is he going to be prone to lean in the direction of president trump, who inevitable - - inevitably be criticizing him on social media regardless of what he does.

The president has called for huge cuts of 1% and 2%, that is lunacy.

How does Kevin warsh stand up once he starts to put the screws to him, as he did to Jay Powell?

Amna: If he is confirmed, he would preside over a fed meeting until June and the economy could be in a different state by then, but the president wants to see lower interest rates.

Can he deliver those?

>> The financial markets have been predicting the fed would cut interest rates at least one or two times later this year and I suspect he can deliver that.

He will probably have a bit of a honeymoon at the fed and the other policymakers will go along with him.

I think the tests will come in 2027 and 2028 where he will have to decide if the president's view of the economy matches his and will he proved to be independent?

I'm sure in his confirmation hearing C will assert his Independence.

He understands what a central bank is.

In a way, the president picked one of the candidates who knows what it is like to be at the fed and that will serve him well.

We will have to see how he acts when there is conflict between what the economy needs and what the president and his political needs are.

Amna: In the minute or so we have left, I have to ask about conversations we have had before the fact that the world is watching when it comes to the fed and its perceived Independence and monetary policy.

What is at stake if he is confirmed and takes the helm?

>> In general, the United States has benefited from having a strong, independent central bank.

Not a perfect one, but global investors believe the central bank, Ben bernanke, Jay Powell, Janet Yellen banks were delivering on their congressional mandate doing their best and they were standing up to political pressure.

The world will watch whether Kevin warsh does the same thing and if they think he is and we will have to pay more to borrow and we are the world's largest borrower so a little bit of increased and interest rates that people are worried about the Independence of the fed will cost taxpayers a lot of money.

Amna: Thank you so much for your time.

Great to speak with you.

>> You're welcome.

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