CNBC's Cassella says she asked Press Sec Leavitt on Monday if Trump was still considering firing Powell if he stayed on as a Fed governor, and she said "I think the President will be satisfied once Kevin Warsh is confirmed as the Fed chair"

This headline indicates potential shifts in Federal Reserve leadership, with implications for monetary policy and market stability.

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Fed Chair Powell (Q&A) says policymakers are not saying we need to hike now; they supported the policy decision

Fed Chair Powell (Q&A) says he does not see the labour market as a source of inflation

CNBC's Cassella says she asked Press Sec Leavitt on Monday if Trump was still considering firing Powell if he stayed on as a Fed governor, and she said "I think the President will be satisfied once Kevin Warsh is confirmed as the Fed chair"

Fed Chair Powell (Q&A) says every incoming Chair looks at Fed communications; feels that will happen, and that is appropriate

Fed Chair Powell (Q&A) says he has not seen Kevin Warsh since January, has not spoken to him recently on policy

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Context

As the President appears satisfied with the nomination of Kevin Warsh as Fed chair, this could signal a move toward a more hawkish stance, impacting expectations for future rate decisions, particularly if Powell were to be dismissed. Traders should watch for market reactions in USD, rates, and broader risk assets as the situation develops.

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