US stocks slid on Friday as President Trump said he would nominate Kevin Warsh to lead the Federal Reserve, against a background of a rising dollar and a screeching halt to 2026's roaring metals rally. The S&P 500 (^GSPC) and the tech-heavy Nasdaq Composite (^IXIC) fell 0.4% and 0.9%, respectively, recording another down session for tech stocks. The Dow Jones Industrial Average (^DJI) dropped 0.4%. Despite Friday's volatility, all the gauges notched slight January gains. The Dow and Nasdaq both posted t ...

Core Viewpoint - President Trump's nomination of Kevin Warsh as the next Federal Reserve chair raises concerns about the independence of the Fed and faces opposition in the Senate [1][2]. Group 1: Nomination and Market Reaction - Warsh is viewed as a hawkish choice with strong Wall Street ties, advocating for multiple reforms of the central bank [1]. - The market is reacting negatively to Warsh's nomination, indicating worries about Fed independence, as noted by Gennadiy Goldberg from TD Securities [4]. - Warsh's long-standing criticism of the Fed's dovish stance makes him a challenging figure for markets to interpret over the long term [5]. Group 2: Monetary Policy Expectations - President Trump has expressed expectations that the next chair will align with his administration's monetary policy, which has raised global concerns about the Fed's independence in setting interest rates [2]. - Warsh's appointment may lead to pressure on longer-dated yields while potentially reducing the need for hedges against inflation due to fears of debt monetization [6]. Group 3: Senate Opposition - Senator Thom Tillis has announced his opposition to Warsh's nomination until the Department of Justice's investigation of current Fed Chair Jerome Powell is resolved [7][8].

Core Viewpoint - President Trump is set to announce his choice for the chairman of the Federal Reserve, a decision that could impact the central bank's independence from political influence [1] Group 1: Announcement and Candidates - Trump plans to announce his Fed chair nominee on Friday morning, a decision that has been highly anticipated [1] - The search for the nominee was led by Treasury Secretary Scott Bessent, with four known finalists: Kevin Warsh, Christopher Waller, Rick Rieder, and Kevin Hassett [1] - Trump previously indicated that Hassett was the frontrunner but later suggested he wanted Hassett to remain in his current position [1] Group 2: Tensions with Jerome Powell - Tensions between Trump and current Fed Chair Jerome Powell have escalated, with Trump criticizing Powell for not cutting interest rates more aggressively [1] - Powell's term as chair ends in May, but he remains on the Fed's board of governors until 2028, which could limit Trump's ability to influence the board [1] - Powell has emphasized the importance of the Fed's independence and advised any successor to avoid getting involved in electoral politics [1] Group 3: Implications of the Nomination - The new Fed chair could influence interest rates, inflation, and job market stability, which are critical to the U.S. economy [1] - If Powell remains on the board, he could create procedural hurdles for Trump's nominee, potentially affecting the balance of power within the Fed [1] - Trump's nominee is expected to align with his views on monetary policy, particularly regarding interest rate cuts [1]

WASHINGTON (AP) — President Donald Trump's nomination of Kevin Warsh to chair the Federal Reserve could bring about sweeping changes at a central bank that dominates the global economy and markets like no other. Warsh, if approved by the Senate, will be under close scrutiny from financial markets and Congress given his appointment by a president who has loudly demanded much lower rates than many economists think are justified by economic conditions. Whether he can maintain the Fed's long time independence ...

Federal Reserve and Economic Outlook - The U.S. Federal Reserve maintained its key interest rate in the range of 3.5%-3.75% [1] - The Fed noted improvements in the U.S. economy and labor market since the last meeting [2] - Powell emphasized the significance of the legal case against Fed Governor Lisa Cook, which could impact her position [2][3] Company Earnings and Market Reactions - Tech giants Meta, Microsoft, and Tesla reported earnings that exceeded expectations for both earnings per share and revenue [3] - Meta's shares surged by up to 10% due to a stronger-than-expected revenue forecast for Q1 [4] - Tesla's stock increased by approximately 1% despite experiencing its first annual revenue decline in 2025 [4] - Microsoft shares fell over 6% due to slowing cloud growth and conservative margin guidance [4] Semiconductor Industry Performance - SK Hynix reported a record full-year profit for 2025, driven by memory chip shortages [5] - Samsung Electronics achieved an all-time high in fourth-quarter earnings, also attributed to memory chip shortages [5] Market Trends - The S&P 500 index reached the 7,000 level for the first time but closed below it [6] - The U.S. dollar strengthened following Treasury Secretary's denial of currency market intervention [6] - Gold prices hit a record high above $5,500 in Asia [6]

Douglas Rissing/iStock via Getty Images Listen below or on the go via Apple Podcasts and Spotify Fed holds rates with just two dissents. Powell stonewalls Fed independence questions. (0:16) Stocks finished mixed as gold keeps running. (1:59) Seagate Technology soars. (2:54) The following is an abridged transcript: The Federal Reserve kept interest rates on hold as expected, while Chairman Jerome Powell stonewalled any controversial questions about central bank independence. Those hoping for firework ...

In addition, the dollar is weighed down by speculation that the US might coordinate FX intervention with Japan to boost the yen, which would dovetail with Mr. Trump's apparent view that a weak dollar is good for the US as a stimulus to US exports. The yen rose to a 2.75-month high against the dollar on Tuesday as US authorities reportedly contacted market participants last Friday to check dollar/yen prices, a possible precursor to intervention.The dollar is also under pressure due to US political uncertaint ...

Bitcoin prices recovered to the $88,000 level on Wednesday following a sharp sell-off earlier in the week, effectively resetting the market before a series of economic events, according to a QCP Capital market update. QCP Capital described the current price action as a technical recovery facing a “Wall of Worry” that includes a Federal Reserve decision and a looming government funding deadline. The trading and investment firm identified the $88,000 level as a critical “trap door” for the cryptocurrency. ...

Key TakeawaysPresident Donald Trump has announced the deployment of a "massive armada" towards Iran, including a carrier strike group, escalating geopolitical tensions in the Middle East.Trump is expected to announce his choice for Federal Reserve Chair soon, signaling a push for lower interest rates that is already contributing to a four-year low for the U.S. dollar and benefiting Asian currencies.The S&P/ASX 200 Index (XJO) in Australia surged by 0.9% to 8,941.6 on Tuesday, reaching a three-month high, dr ...

Key Takeaways The Federal Reserve's policy committee meets tomorrow and Wednesday, and officials are expected to hold the central bank's key interest rate steady after a series of cuts in recent months. What To Expect From the January Meeting The Federal Open Market Committee (FOMC) will meet to consider whether to cut the federal funds rate from its current range of 3.5% to 3.75%. The Fed cut its interest rate by a quarter of a percentage point at each of the previous three meetings in an effort to prevent ...