Scott Horsley

Back then, Warsh was considered a hawk with a worried eye on inflationary pressures, even when unemployment neared 10 percent.

Still, Trump is counting on Warsh to bring lower interest rates.

If confirmed by the Senate, Warsh would replace Jerome Powell, whose term as Fed chairman ends in May.

Wholesale inflation in December was higher than expected.

The Labor Department says wholesale prices rose 0.5% during the month and were up 3% for the year.

Asian stocks were mixed overnight, up in Seoul but down in Hong Kong, Shanghai and Tokyo.

Scott Horsley, NPR News, Washington.

Trump says Kevin Warsh is central casting for a central banker.

The president's hoping Warsh will follow his roadmap to lower interest rates.

Warsh previously served on the Fed's governing board from 2006 to 2011.

During the financial crisis, he served as a liaison between the Fed and Wall Street, where he'd worked for Morgan Stanley.

Trump has regularly criticized the current Fed chairman, Jerome Powell, for not lowering interest rates more aggressively.

The Fed did cut rates three times last fall in an effort to shore up the sagging job market, but with inflation still elevated, the Fed opted to hold its benchmark rate steady earlier this week.

Warsh will likely face questions during his confirmation hearing about whether he'll exercise independent judgment or simply do the president's bidding.

Scott Horsley, NPR News, Washington.

Members of the Fed's rate-setting committee voted 10-2 to leave their benchmark rate unchanged.

The Fed had lowered interest rates at three previous meetings out of concern over the softening job market.

But Fed Chairman Jerome Powell says there are some signs the unemployment rate is stabilizing, while inflation is still higher than the central bank would like.

Howe will likely preside over two more rate-setting meetings before his term as Fed chairman expires in May.

President Trump is expected to nominate a new leader for the central bank soon.