Wall Street Reacts to Trump's Hawkish Fed Chair Pick Kevin Warsh

• Donald Trump's pick of Kevin Warsh as the next Federal Reserve Chair has led to a mixed reaction on Wall Street, with the dollar paring gains and the Treasury curve steepening.
• Warsh is seen as a relatively hawkish choice, raising concerns about the Fed's independence given Trump's past criticism of the central bank's policy.
• Analysts like Gennadiy Goldberg of TD Securities note market worries about Fed independence and Warsh's long-standing criticism of the Fed being too dovish and his opposition to balance sheet use.
• Some strategists, including David Robin of TJM Institutional Services, view Warsh as a data-dependent choice, while others like Tony Farren of Mischler Financial Group expected a different market reaction due to his hawkish reputation.
• Despite initial market volatility, many experts believe Warsh, as one of 12 voting members, will need to build consensus, and his pragmatism might prevent an overly hawkish stance.

Why It Matters: Wall Street shows mixed reactions to Kevin Warsh's hawkish Fed chair nomination, raising concerns about Fed independence.