According to Gary Black, US stocks fell and Treasury yields rose as President Trump prepared to nominate Kevin Warsh as the next Federal Reserve chair. According to Gary Black, Warsh is viewed as more hawkish on monetary policy and inflation than other contenders, contradicting Trump’s push for lower interest rates. According to Gary Black, the confirmation path may be complicated because Senator Thom Tillis vowed to block any Trump Fed nominees until an investigation into the central bank’s renovation is resolved. According to Gary Black, Trump is expected to announce his choice for Fed chair on Friday morning.

According to CNBC, Trump will begin final-round interviews for Federal Reserve Chair, starting with Kevin Warsh, signaling the selection process is in its closing phase, source: CNBC. The Fed Chair also chairs the FOMC and shapes the policy agenda and rate communications that drive interest-rate expectations and liquidity conditions, source: Board of Governors of the Federal Reserve System. Traders should monitor US 2-year Treasury yields, the US dollar index, and fed funds futures as implied odds shift during leadership selections, with probabilities broadly tracked via CME FedWatch, source: CME Group. Crypto markets including BTC and ETH are sensitive to US rate expectations and liquidity, with elevated volatility documented around major Fed policy events, source: Bank for International Settlements.