Yesterday, President Donald Trump said he had completed interviews with candidates for the next chair of the Federal Reserve and confirmed that he already had someone in mind for the post.

Trump told reporters on Thursday that he would announce his choice soon but would not disclose the name. He added that the person was very respected and well known and that he believed the individual would do a great job.

The comment has inevitably sparked speculation and animated debate in financial circles. Names circulating in the press over recent weeks range from seasoned economists and former officials to financial?sector figures who share the administration's economic views.

The choice of a new Fed chair will carry huge weight for the US and global economy. The appointee will lead the central bank at a time when policymakers must balance support for growth with labor market considerations and deal with issues affecting financial regulation.

A chair who aligns with the president's views could shift the course of monetary policy, since Mr. Trump has repeatedly pressed the Fed to cut rates. Investors and analysts will watch the process closely for clues about future interest rate policy, inflation, and the dollar. An official announcement of the president's pick is expected in the coming days, which should clarify the outlook and give markets a firmer footing.

Trump's shortlist includes National Economic Council director Kevin Hassett, BlackRock's Rick Rieder, current Fed governor Christopher Waller, and former governor Kevin Warsh.

Hassett had earlier been viewed as the frontrunner, but Mr. Trump suggested yesterday he might prefer to keep Hassett in his current role.

The president's nominee will replace Jerome Powell, whose term as chair expires in May. Throughout 2025, Mr. Trump repeatedly criticized Powell for moving too slowly to cut interest rates.

Earlier this week, in Davos, Mr. Trump offered mixed signals about how many candidates remained under consideration. Treasury Secretary Scott Bessent, who is leading the search, recently said four candidates remain on the short list and that the president could announce his choice before the end of the month.

Notably, Mr. Trump also sought to remove Fed governor Lisa Cook over mortgage fraud allegations she denies. She was allowed to remain in office while the case proceeds. The Supreme Court heard oral arguments this week. Asked whether the court doubted its authority to remove her, Mr. Trump said he was responding to questions from the justices.

A technical outlook for EUR/USD suggests that buyers should aim to reclaim 1.1766. Only that would open the way to test 1.1785. From there, a move to 1.1810 is possible, although advancing beyond that without support from major players would be difficult. The extended target is the high of 1.1851. On a decline, meaningful buying interest is likely around 1.1735. If no buyers appear there, it would be better to wait for a new low at 1.1705 or to open long positions from 1.1670.

As for GBP/USD, buyers of the pound sterling need to capture the nearest resistance at 1.3514. Only that will allow them to target 1.3540, above which a breakout would be challenging. The extended target is around 1.3564. If the pair falls, bears will attempt to seize control at 1.3485. If they succeed, a break of that range would deal a serious blow to bullish positions and could push GBP/USD down to 1.3460, with scope to extend to 1.3435.