Post #15751

New Fed Chair Announced - Warsh The Dollar showed some strength this morning — though basically flirting with early-2022 lows. Trump nominating Kevin Warsh as the next Fed chair (something markets were already leaning toward) was a factor. He’s viewed as hawkish, but not extreme — someone who’d support lower rates, just not aggressively. Rate expectations haven’t shifted much — markets still see one cut around June and another later in the year, possibly October. On the political side, the provisional deal to avoid a U.S. government shutdown helped stabilize sentiment, which supported the Dollar short term. Zooming out, January was rough — DXY dropped 2%, its worst month since June. That “sell America” flow came from geopolitical tension, policy uncertainty, tariff shifts, and broader positioning moves. That said — the core fundamentals behind DXY aren’t broken. If confidence rotates back into the Dollar and positioning flips, this thing can extend higher than people expect. - Alan