Nominated Federal Reserve Chairman Kevin Warsh [Reuters Yonhap News]

Kevin Warsh, a former Federal Reserve governor nominated as the next chairman of the Federal Reserve (Fed), is considered a highly trusted figure both on and off Wall Street due to his diverse career in finance, the White House, and think tanks, having served as the youngest governor in the Fed's history.

Amid growing controversy over the crisis of the Fed's independence, Wall Street views the nomination of former Governor Warsh, a proven figure, as a "safe choice."

He majored in Public Policy at Stanford University and graduated from Harvard Law School. He then worked in mergers and acquisitions (M&A) at the investment bank Morgan Stanley, rising to the positions of Vice President and Executive Director at a young age in his 30s.

Leaving Wall Street for Washington D.C. after the 9/11 terrorist attacks in 2002, he served as a Special Assistant to the President for Economic Policy and Executive Director of the White House National Economic Council (NEC) under the George W. Bush administration.

When former President George W. Bush appointed Warsh as a Fed governor in February 2006, he was a young 35-year-old, making him the youngest governor in the Fed's history.

At the time of his appointment, some within and outside the Fed voiced concerns about his age and lack of experience in economic policy, deeming his appointment inappropriate.

However, after his appointment as a Fed governor, he played a key role as a close aide to then-Fed Chairman Ben Bernanke in navigating the financial crisis, earning a reputation as a member of Bernanke's "inner circle" along with former Fed Vice Chairman Donald Kohn and former Treasury Secretary Timothy Geithner.

He was particularly recognized for his role as a crucial bridge connecting the Fed with Wall Street and Washington D.C. politics.

Sharing the same views as then-Chairman Bernanke on major monetary policy decisions, Warsh drew attention in November 2010 when he was the only member of the Fed's Board of Governors to express a critical view of the decision for a second round of quantitative easing (QE), warning that it could lead to inflation.

Warsh resigned from his position as a Fed governor in 2011, with more than seven years remaining on his term, which was set to expire in January 2018.

Although the exact reason for his resignation was not disclosed at the time, analysis suggested that significant differences in opinion with then-Chairman Bernanke, who advocated for the continuation of quantitative easing policies, may have been a contributing factor.

Afterward, Warsh served as a distinguished fellow at the Hoover Institution at Stanford University, voicing critical opinions on the Fed's monetary policy.

He also joined Duquesne Family Office, the family office of billionaire investor Stanley Druckenmiller, as a partner after stepping down from the Fed.

Druckenmiller is a former chief investment strategist at George Soros's fund and is considered a mentor to current Treasury Secretary Scott Beckent, who also has a background at Soros Fund.

Warsh was a strong contender for the Fed chairmanship during the first Trump administration in 2017 but was ultimately passed over for the current chairman, Jerome Powell.

Following the launch of the second Trump administration, he was also considered a candidate for Treasury Secretary.

Leading up to his nomination as the next Fed chairman, he was in a "two-man race" with White House National Economic Council (NEC) Chairman Kevin Hassett, a close economic advisor to President Trump.

In a media interview last month, President Trump indicated Warsh was a strong candidate, stating, "There's Kevin and Kevin. I think both Kevins are excellent," referring to Warsh as being at the top of the candidate list.

Wall Street generally views this nomination as a "safe choice," believing Warsh is a more suitable candidate than Hassett, a close associate of President Trump, to maintain the credibility of the Fed's monetary policy.

Warsh has also served as a director of Coupang since October 2019. However, he would need to resign from his Coupang board position if appointed as Fed chairman.

Estee Lauder heir Ronald Lauder [EPA Yonhap News]

Warsh is also the son-in-law of Ronald Lauder, heir to the cosmetics company Estee Lauder.

Ronald Lauder is considered one of the most influential figures in the Jewish community, serving as the president of the World Jewish Congress.

Ronald Lauder is also a friend of President Trump, known for about 60 years, and a significant political donor.

For this reason, speculation suggests that Warsh's "in-laws' background" may have played a role in President Trump's decision to nominate him for Fed chairman, in addition to his own career achievements.

Former US National Security Advisor John Bolton has also stated that Ronald Lauder's advice was involved when President Trump first became interested in acquiring Greenland in late 2018.