A key question for market players, what would Kevin do? I'm David Brancaccio in Los Angeles. Good morning to you. Investors are trying to figure out what kind of federal reserve we would see under Kevin Warsh, President Trump's nominee. With the Central Bank stay independent, is Warsh really an inflation dove as advertised? Marketplaces Nancy Marshall-Genzor reports.

Kevin Warsh has already worked as a Fed governor. He played a key role in helping the Fed create

bailout plans for faltering financial giants during the financial crisis. And he earned a

reputation as an inflation hawk, someone who prefers higher interest rates to keep inflation in check.

Now he thinks the Fed should cut rates. Here he is on CNBC back in July.

The AI is going to make almost everything costs less, and the U.S. can be a big winner.

Warsh says productivity gains from AI will tamp down inflation so the Fed can and should cut

rates to keep the AI boom going.

Claudia Somm is chief economist and New Century Advisers.

She's also a former Fed economist.

She worked with Warsh when he was there.

She believes Warsh would be independent in favor of raising rates in the future if that were appropriate,

because Fed chairs can agree with the president at first. But then once the Fed chair is put in place,

then the world could change. And then you have to back up and the Fed chair could go in a different

direction. President Trump knows this and mentioned it in his speech at Davos, Switzerland last month.

It's amazing how people change once they have the job, but it's too bad.

Sort of just loyalty, but they got to do what they think is right.

It may be a while before we know what kind of chair Warsh would be.

He still has to be confirmed by the Senate.

Before that, he has to get the nod from the Senate Banking Committee.

It hasn't even scheduled his nomination hearing yet.

Republican Senator Tom Tillis of North Carolina says he'll oppose all of President Trump's nominees

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