Market Highlight 02.02.2026

The U.S President D. Trump said on Friday that he would nominate Kevin Warsh, a former Federal Reserve official, as the next Chair of the Federal Reserve - an appointee who has echoed the President’s earlier criticisms of the Central Bank. Mr Warsh served on the Federal Reserve’s Board of Governors from 2006 to 2011 and played a prominent role in efforts to stabilise Wall Street during the 2008 financial crisis. If confirmed by the Senate, he would succeed Jerome Powell, whose term as Chair ends in mid-May 2026. The nomination of a FED Chair may be viewed as the most consequential personnel decision Trump will make for the remainder of his term, given the Central Bank’s critical role as a key backstop in financial crises and as the rate-setter that influences virtually every segment of the economy and markets. Mr Warsh is widely known as an inflation hawk, having repeatedly warned that overly accommodative monetary policy would fuel higher prices in the U.S. More recently, he has supported the view that the Federal Reserve should cut interest rates more quickly.

The USD/VND interbank exchange rate extended its decline early in last Friday’s session, falling to a fresh eight-month low of 25.900. Buying interest at lower levels re-emerged late in the afternoon, helping the rate recover to 25.950 by the close. The exchange rate is expected to maintain an upward bias this week, moving back toward 26.000 as the USD has rebounded by more than +1% after President D. Trump announced his preferred candidate for the next FED Chair. The market has roughly three weeks remaining before the Lunar New Year holiday. The exchange rate’s uptrend is expected to become more pronounced once markets reopen after the holiday.

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