Nearly a decade after President Donald Trump first considered nominating Kevin Warsh for Federal Reserve Chair, Warsh has intermittently pursued the position. Now formally nominated, the immense challenges ahead are clear. To be effective in the role, Warsh must win the trust of at least three key groups: the officials on the Fed's policy-making committee, whose votes are needed to adjust interest rates; the financial markets, where efforts to lower borrowing costs could fail if policies are perceived as political; and Trump himself—a former real estate developer with a keen sense of how interest rate changes affect debtors, whether corporations, households, or the government. Raghuram Rajan, an economist at the University of Chicago and former governor of the Reserve Bank of India, stated, "He must strike a delicate balance between these factions. If seen as too compliant with the administration, he will lose support within the Fed, fail to build policy consensus, and ultimately become a chairman in title only." Rajan added that if Warsh creates distance from the White House, the Fed could again become a target. During Trump's previous term, current Chair Jerome Powell faced relentless criticism for not cutting rates quickly enough and is now subject to a criminal investigation by the Justice Department. Powell has stated the investigation is merely a pretext by Trump to pressure him into lowering rates. Warsh's nomination may also face a turbulent confirmation process in the Senate. Two Republican senators have already declared they will oppose his nomination until the criminal investigation into Powell is resolved. One of them, Tom Tillis of North Carolina, is a member of the Senate Banking Committee. If he joins all Democratic members in voting against Warsh, the committee could block the nomination. Tillis reiterated on Friday his firm opposition pending the Justice Department's findings. Virginia Democratic Senator Mark Warner, also on the Banking Committee, remarked, "Given that this administration has shown it will bring charges against any Fed chair who sets rates based on economic reality rather than Trump's personal wishes, it is hard to believe a chair chosen by this president can maintain the independence the role requires." Further complications may arise: due to the Fed's complex structure, even after Powell's term as chair ends in May, he can remain on the Board of Governors and the rate-setting committee. This would create an unprecedented situation in the Fed's 80-year history—a former chair potentially acting as a counterweight to the new one. Demonstrating a degree of independence from the White House may be Warsh's greatest challenge. Former Fed Vice Chair Alan Blinder noted that the critical unknown is what Trump demanded in exchange for the nomination. The Princeton economist expressed deep concern about any private understandings between Trump and Warsh regarding Fed policy. Blinder said, "Everyone knows Donald Trump's style—he always extracts some form of loyalty pledge. I hope Kevin Warsh did not agree to such terms." However, Blinder also pointed out that Warsh possesses substantial market and monetary policy experience, providing a solid foundation for the role. More importantly, Warsh excels at interpersonal relations and has the ability to influence other Fed officials during policy debates. Blinder observed, "His most outstanding quality is his skill in interpersonal relationships and diplomatic mediation. He knows how to work with people, is an expert in this area, and has considerable personal charm." Former Fed Governor Don Kohn, who has worked with Warsh, described him as "exceptionally intelligent—not only sharp in analytical thinking but also highly perceptive of the dynamics and sentiments in any communication setting." Kohn stated, "He understands that the Fed's decisions must be based on the long-term goals of price stability and maximum employment, not the short-term demands of the current White House occupant. This is absolutely crucial."