Finance
Morning Bid: Be careful what you Warsh for
Published by Global Banking and Finance Review
Posted on January 30, 2026
3 min readLast updated: January 30, 2026
Quick Summary
Markets turned risk-off as Kevin Warsh emerged as a potential Fed Chair nominee, impacting stocks, commodities, and bond yields.
Morning Bid: Be careful what you Warsh for
Market Reactions to Warsh's Potential Fed Nomination
A look at the day ahead in European and global markets from Gregor Stuart Hunter
Impact on Stocks and Commodities
Stocks and commodities are down, the dollar and bond yields are up, and markets have turned firmly risk-off after U.S. President Donald Trump said he has decided who he will nominate to lead the Federal Reserve.
Economic Indicators to Watch
Kevin Warsh's name has rocketed to the top of the prediction markets after the two met at the White House.
Geopolitical Factors Influencing Markets
While Warsh, a former Fed governor, is seen as an advocate of lower interest rates, he is also considered to be one of the less radical choices among the various candidates that have been raised and perhaps more cautious on heavy monetary stimulus than others.
S&P 500 e-mini futures slid 0.4% and Nasdaq e-mini futures were off 0.5% after Reuters reported Warsh visited the White House for a meeting on Thursday, citing sources familiar with the matter. Bloomberg News later reported the Trump administration was preparing to nominate Warsh as the next Fed chair.
With the market weighing the implications of the pick, MSCI's broadest index of Asia-Pacific shares outside Japan tumbled as much as 1.3%, taking the shine off the benchmark's best monthly gain of the past three years.
In early European trade, pan-region futures were last up 0.6%, German DAX futures gained 0.5% and FTSE futures climbed 0.2%.
Brent crude was last down 1.4% at $69.74 as oil markets weighed heightened geopolitical risks, after Trump on Thursday signed an executive order declaring a national emergency and establishing a process to impose tariffs on goods from countries that sell or otherwise provide oil to Cuba. Trump also said he was planning to talk to Iran amid rising tensions.
However, there's been no word yet on what Trump thought of the "Melania" film premiere on Thursday. Speaking on condition of anonymity, a U.S. official told Reuters that attendance at the big-budget documentary about First Lady Melania Trump was seen as obligatory for cabinet officials, many of whom attended the glitzy event at the Kennedy Center in Washington.
Key developments that could influence markets on Friday:
Company results:
Exxon Mobil, Chevron, American Express, Verizon, Regeneron Pharmaceuticals, Aon, CaixaBank
Economic events:
France: Consumer spending and producer prices for December, preliminary GDP for Q4
Germany: Unemployment, preliminary CPI and HICP for January, flash GDP for Q4, import prices for December
UK: Bank of England consumer credit and mortgage lending for December
Euro zone: Flash preliminary GDP for Q4, unemployment rate for December
Debt auctions:
UK: 1-month, 3-month and 6-month government debt
(Reporting by Gregor Stuart Hunter; Editing by Jamie Freed)
Key Takeaways
- •Kevin Warsh is a potential nominee for Federal Reserve Chair.
- •Markets reacted with stocks and commodities falling.
- •The dollar and bond yields increased amid uncertainty.
- •Geopolitical tensions influenced oil market movements.
- •Key economic events and company results to watch.
Frequently Asked Questions about Morning Bid: Be careful what you Warsh for
1What is monetary policy?
Monetary policy refers to the actions taken by a central bank to control the money supply and interest rates in an economy, aiming to achieve macroeconomic objectives like controlling inflation and stabilizing currency.
2What are stock markets?
Stock markets are platforms where shares of publicly traded companies are bought and sold. They provide companies with access to capital and investors with a chance to earn returns on their investments.
3What is a Federal Reserve Chair?
The Federal Reserve Chair is the head of the Federal Reserve System, the central bank of the United States. This position involves overseeing monetary policy and ensuring the stability of the financial system.
4What is economic growth?
Economic growth is the increase in the production of goods and services in an economy over time, typically measured by the rise in Gross Domestic Product (GDP).
5What are commodities?
Commodities are basic goods used in commerce that are interchangeable with other goods of the same type. Examples include oil, gold, and agricultural products.
