Trump announced he is nominating former Fed governor Kevin Warsh to replace Jerome Powell when his term ends in May. The market reacted with a slight sell-off, sending the S&P 500 down 0.2% and the Nasdaq down 0.3%. Treasury yields and the dollar both moved higher. Warsh served on the Fed board from 2006 to 2011 and is viewed as a conventional choice, though he has a reputation for being hawkish on interest rates and the balance sheet. Senate confirmation isn't guaranteed, as Senator Thom Tillis stated he would block any nominee until a DOJ investigation into Powell is resolved. Separately, Fed Governor Waller explained his dissent at the recent meeting, noting he wanted a rate cut due to signs of a weakening labor market.