US President Donald Trump is set to announce his nominee for the next head of the US Federal Reserve, ending months of speculation in financial markets. Former Federal Reserve governor Kevin Warsh has emerged as the leading candidate, with reports indicating he met with Trump at the White House and is expected to receive the nomination. Warsh is viewed as a more hawkish choice compared to other contenders, which has prompted market participants to reassess potential shifts in monetary policy once Jerome Powell's term concludes in May.

Warsh's stance on monetary policy, including his preference for a smaller central bank balance sheet, appears to contrast with Trump's calls for deeper interest rate cuts and looser policy. The decision is being closely watched for its implications on the independence of the Federal Reserve and the future direction of US interest rates. The dollar strengthened following news of Warsh's potential nomination, reflecting market expectations of a less dovish approach under his leadership.