BEIJING, Dec. 23 (Xinhua) — U.S. President Trump plans to formally nominate the next Federal Reserve Chair in the first week of January 2026, as current Chair Jerome Powell’s four-year term is set to end in May next year. The news has attracted widespread attention from global financial markets, with investors focusing on the nominee’s stance on “growth-friendly” monetary policy.

Trump has repeatedly emphasized that he hopes the successor will implement accommodative monetary policies conducive to economic expansion. Current candidates include Fed Governors Christopher Waller and Michelle Bowman, White House Economic Advisor Kevin Hassett, and former Fed Governor Kevin Warsh. Meanwhile, there are significant divisions within the Fed regarding policy direction. Governor Milan warned that stopping interest rate cuts in 2026 could trigger an economic recession, while Cleveland Fed President Loretta Mester advocated maintaining current interest rate stability, citing concerns about stubborn inflationary rebounds.

Affected by these expectations, the U.S. bond market fluctuated slightly. The 2-year U.S. Treasury yield rose 2.96 basis points to 3.507%, and the 10-year U.S. Treasury yield climbed 2.74 basis points to 4.165%. The U.S. dollar index weakened simultaneously, falling 0.46% to 98.26, while non-U.S. currencies generally rose. The euro against the dollar and the pound against the dollar increased by 0.46% and 0.64% respectively. U.S. Treasury Secretary Janet Yellen expressed optimism, stating that inflation is steadily moving toward the 2% target, and economic growth and price stability will improve simultaneously in 2026.