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This is a report by Politico. Yesterday we learned that John Taylor, Jerome Powell and incumbent Janet Yellen are the final candidates for the job of Fed Chair. Warsh and Cohn have already been ruled out earlier.

Yellen is the most dovish of the three. That’s why this report could be USD positive. If Taylor is picked, the greenback could continue even higher. Picking Powell could have a more limited effect.

President Donald Trump has turned the process of nominating the head of the central bank into a reality television game in which candidates are ousted one by one. He already ruled out his advisor Gary Cohn and hinted that Yellen could go. In an interview, Trump said that Yellen is good but that “he has to make his mark”.

John Taylor is a clear hawk, the creator of the Taylor Rule. Jerome Powell is a governor at the Fed and has not expressed himself too much on monetary policy. Nevertheless, he is seen as more of a hawk than Yellen.

Yellen will likely raise the interest rate once again on her way out.

The US dollar is ticking higher across the board.

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