US stock index futures cut losses after Trump nominates Kevin Warsh as next Fed Chair

U.S. stock index futures cut some losses on Friday, after U.S. President Donald Trump nominated Kevin Warsh as the next Federal Reserve chair.

"I am nominating Kevin Warsh to be chairman of the board of governors of the Federal Reserve System," Trump said, announcing his latest move to put his stamp on a Fed that he has lambasted for not lowering interest rates. The position requires confirmation by the U.S. Senate. 

At 06:51 a.m. ET, Dow E-minis were down 162 points, or 0.33%, S&P 500 E-minis were down 29.25 points, or 0.42% and Nasdaq 100 E-minis were down 146 points, or 0.56%

Warsh is seen as a comparatively moderate figure, as one of the less radical choices and notably more cautious about deploying heavy monetary stimulus despite his preference for lower rates.

A lawyer and a distinguished visiting fellow in economics at Stanford University's Hoover Institution, Warsh has said he believes the president is right to press the central bank for steep interest-rate reductions, and has criticized the Fed for underestimating the inflation-busting potential of productivity growth supercharged by artificial intelligence.

He has also called for a broad overhaul of the central bank that would slim its balance sheet and ease bank regulations. 

Trump's nomination of Powell's successor, who must be confirmed by the Senate, comes amid unprecedented presidential efforts to exert control over the Fed.

(Reporting by Shashwat Chauhan in Bengaluru; Editing by Krishna Chandra Eluri)