If confirmed, Trump’s Fed-chair nominee would face several treacherous balancing acts.

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.

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.

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