Market Highlight 14.05.2026

The U.S Senate confirmed Kevin Warsh as the 17th Chair of the Federal Reserve on Wednesday night by a 54 - 45 vote. No FED Chair has been confirmed by such a narrow margin since Senate confirmation became a mandatory requirement for the position in 1977. A difficult economic backdrop and President Trump’s sharp criticism of the FED’s independence have made this a particularly turbulent leadership transition for the institution. Warsh said he would protect the Central Bank’s independence in monetary policymaking and that he was not under pressure from the U.S President regarding policy decisions.

Against the backdrop of the Iran conflict disrupting energy markets, rising inflation is reducing the scope for the rate cuts that Warsh had supported during his campaign for the position. Meanwhile, FED policymakers are cautiously weighing whether two consecutive months of solid employment data mark a turning point for the U.S labor market, which had been slowing in recent months. Warsh will face an unprecedented set of difficult questions regarding the relationship between the Federal Reserve and the White House. He is expected to chair the Federal Reserve’s next policy meeting on 16 - 17/6. His first four-year term as Chair will run through 2030.

The USD Index rose nearly 0,2% on Wednesday, reaching its highest level in two weeks after both of the U.S April inflation reports came in above expectations, as the high-level meeting between U.S and Chinese leaders in Beijing is set to begin this morning. Domestically, interbank USD/VND moved back up to 26.350 yesterday, while the daily ceiling was kept unchanged at 26.379.

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