Washington DC - President Donald Trump has nominated Kevin Warsh, a former Federal Reserve governor, to be the next US Central Bank chief.

In a Truth Social post shared on Friday, Trump said he has known Warsh "for a long period of time," and has "no doubt" that he will go down as "maybe the best" chairman of all time.

"On top of everything else, he is 'central casting,' and he will never let you down," Trump added.

Trump's decision caps a closely watched search for a successor to Fed Chair Jerome Powell, whom the president has repeatedly lambasted for not cutting interest rates more swiftly.

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The president's selection ends a race that had narrowed to four contenders: Warsh, current Fed governor Christopher Waller, Rick Rieder of BlackRock, and Trump's top economic adviser Kevin Hassett.

But Warsh, if confirmed by the Senate, will take the helm at a time when the Trump administration has sharply escalated pressure on the central bank.

Trump's moves have sparked concern about risks to the Fed's political independence, which experts warn could have ramifications for the world's biggest economy.

Warsh, who is from New York, has recently stepped up his criticism of the Fed, endorsing many of the policy positions of Trump and his administration.

As Trump continues to call for lower interest rates to boost the economy, all eyes will be on how Warsh defends the bank's independence under pressure from the president.