Warsh a good choice for Fed Chair but now the hard part begins, says Fed's Roger Ferguson

Summary

CNBC's Steve Liesman and former Fed Vice Chairman Roger Ferguson discuss Kevin Warsh's nomination to lead the Federal Reserve. Ferguson says the pick was not surprising and that the hard part now is managing a divided Fed, building consensus, and reassuring markets of the Fed's independence. Liesman argues Warsh should leave his hawkish dogma at the door and that the bond market will test him on whether he will sacrifice growth to control inflation. No specific securities or trades are recommended.

• Kevin Warsh is nominated to lead the Federal Reserve.
• Roger Ferguson says the choice was expected and the hard work begins now.
• Ferguson highlights Senate politics, a divided Fed, and the need to reassure markets on independence.
• Steve Liesman says Warsh must leave his monetary policy dogma at the door.
• Liesman expects Warsh could turn hawkish and raise rates if inflation is not controlled.
• Liesman says every Fed chair, especially with bond market scrutiny, is tested on inflation credibility.
• Ferguson says central bankers can learn from history and mistakes, with Volcker as the model.
• No concrete security or trade recommendations were made.