Overview
- President Trump said he will reveal his choice on Friday, a day after meeting former Fed Governor Kevin Warsh at the White House.
- Bloomberg and other outlets report the administration is preparing to nominate Warsh, though officials caution the decision is not final.
- Warsh, who served on the Fed board from 2006 to 2011, is viewed as a more hawkish option and has advocated a smaller Fed balance sheet and structural reforms.
- Markets have priced in a Warsh pick, with the U.S. dollar strengthening, Treasury yields rising, and prediction markets shifting heavily in his direction.
- The selection faces potential confirmation hurdles as Senator Thom Tillis has threatened to block Fed nominees until a DOJ investigation into Fed headquarters renovations is resolved.