Wall Street Reacts as Warsh Selected by Trump as Next Fed Chair

Wall Street investors and strategists said that President Donald Trump’s pick of Kevin Warsh to lead the Federal Reserve is a relatively hawkish choice, likely to resist balance-sheet expansion which will support the dollar and a steeper Treasury yield curve.

If confirmed by the Senate, Warsh — despite his track record of often supporting higher interest rates because of fears of inflation — will need to navigate a president who in his second term has pilloried Fed officials for not easing policy as aggressively as he would like. The dollar gained and the Treasury curve steepened.