US dollar bounces back after Trump names new Fed chair
Big news for the markets: The US dollar got a boost after President Trump announced Kevin Warsh will be the next Federal Reserve Chair, taking over from Jerome Powell in May.
Analysts think Warsh might go easier on rate cuts than others would have, which could keep things steadier for now.
This comes right after the dollar had dropped sharply—so this bounce feels like a quick market correction.
Fed just kept interest rates steady
The Fed just kept interest rates steady, and most expect only a slight cut later this year.
That helped push the dollar index up nearly 0.8% against major currencies like the euro and yen.
On top of that, new data showed US producer prices spiked in December thanks to import tariffs, giving the dollar even more strength.
Geopolitical concerns remain in focus, with Trump saying he planned to speak with Iran and more US military moves in play.