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

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.

President Donald Trump announced on Friday that he is nominating former Federal Reserve Governor Kevin Warsh to become chairman of the central bank.

Andrew Slimmon, Morgan Stanley senior portfolio management, joins 'The Exchange' to discuss Trump's nomination to head the Federal Reserve, Kevin Warsh.