President Trump is set to announce his pick to replace Federal Reserve Chair Jerome Powell, with speculation pointing to former Fed governor Kevin Warsh as the likely choice. The White House is reportedly preparing for Warsh’s nomination, as he remains on the shortlist to lead the central bank. Warsh met with Trump on Thursday ahead of the announcement.

Analysts believe that if Warsh is appointed, it could signal a commitment to Fed independence and stability, as he has been a vocal advocate for central bank autonomy in the past. The news of Warsh’s potential nomination has already caused a positive reaction in the U.S. dollar, as markets view him as a steady and respected economist who would uphold Fed mandates without being swayed by political pressures.

Market participants are closely watching the developments surrounding the Fed chair announcement, with many opting to lighten their positions due to potential geopolitical uncertainties over the weekend. The market response to Trump’s pick will provide more clarity on how investors view the future of the Federal Reserve under Warsh’s leadership, which is expected to be more predictable and less volatile than other potential candidates.

Read more at Yahoo Finance: Trump to announce his Fed chief pick on Friday