Trump to Announce New Fed Chief, Boosting Dollar

The dollar rose after reports that Kevin Warsh is likely to be named the next Federal Reserve chair.

Jan. 30, 2026 at 3:47am

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The dollar rose on Friday after U.S. President Donald Trump said he would soon announce his nominee to head the Federal Reserve, with reports pointing to Kevin Warsh as the likely pick. The euro, sterling, and Japanese yen all fell against the dollar, leaving the dollar index 0.37% higher. The dollar also received a lift after lawmakers reached a deal to avoid a government shutdown.

Why it matters

The selection of the next Federal Reserve chair is a significant economic decision that can impact interest rates, inflation, and the overall strength of the U.S. dollar. Warsh is seen as a more experienced and market-friendly candidate compared to other rumored contenders, which is why the dollar rose on the news.

The details

Trump said he intends to name his choice to replace Fed Chair Jerome Powell on Friday. Bloomberg News reported that Warsh would get the nod to replace Powell, while a person familiar with the matter told Reuters that Warsh met with Trump at the White House on Thursday. The dollar rising is "an understandable reaction as this would confirm who the next Fed Chair will not be - Kevin Hassett or Rick Rieder," said Derek Halpenny, MUFG's head of research for global markets EMEA. Hassett and Rieder were perceived as being inexperienced and too close to Trump, while Warsh is seen as more experienced and independent.

  • Trump said he would announce his Fed chair nominee on Friday, January 30, 2026.
  • Warsh met with Trump at the White House on Thursday, January 29, 2026.

The players

Donald Trump

The President of the United States who will be announcing his nominee for the next Federal Reserve chair.

Kevin Warsh

The likely nominee to replace Jerome Powell as the next chair of the Federal Reserve.

Jerome Powell

The current chair of the Federal Reserve.

Kevin Hassett

A rumored contender for the Fed chair position who was perceived as being inexperienced and too close to President Trump.

Rick Rieder

Another rumored contender for the Fed chair position who was perceived as being inexperienced and too close to President Trump.

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What they’re saying

“An understandable reaction as this would confirm who the next Fed Chair will not be - Kevin Hassett or Rick Rieder.”

— Derek Halpenny, Head of Research, Global Markets EMEA, MUFG (Reuters)

What’s next

Trump is expected to officially announce his nominee for the next Federal Reserve chair on Friday, January 30, 2026.

The takeaway

The selection of the next Federal Reserve chair is a critical economic decision that can significantly impact the strength of the U.S. dollar. The market's positive reaction to reports of Kevin Warsh as the likely nominee suggests he is seen as a more experienced and independent choice compared to other rumored contenders.