‘America First’ Fed? Chinese economists doubt Trump’s chair nominee can shore up US dollar

South China Morning PostCenter-RightEN 1 min read 100% complete by Sylvia MaFebruary 2, 2026 at 12:00 PM

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Chinese economists doubt that Kevin Warsh's potential nomination as Federal Reserve chair by President Trump will lead to a sustained recovery of the US dollar. They believe that persistent concerns about the Fed's independence, especially with policies potentially prioritizing domestic goals, could limit any lasting rebound. These concerns have grown under the current chair, Jerome Powell, due to Trump's public criticism and rising government debt. While Warsh's nomination might offer temporary relief by revising expectations for US dollar liquidity, analysts suggest his "America First" approach could result in a "scarcer but more stable" dollar environment, more closely aligned with US domestic priorities.

Key Entities & Roles

Key Player Opposition Context

United States 50% Beijing 60% Jerome Powell 60% China International Capital Corp 70% Kevin Warsh ×480% Donald Trump ×390% United States dollar ×690% Federal Reserve ×290%

Keywords

us dollar 100% federal reserve 90% monetary policy 80% america first 70% kevin warsh 70% central bank independence 60% rate cuts 60% jerome powell 50% de-dollarisation 40% global financial system 40%