Warsh and peace: a nuanced market response to the new Fed nomination

This week, Paul Robson and Brian Daingerfield dig into the major themes affecting currency markets. They begin by examining the Bank of England’s ‘dovish hold’ on 5 February – and the drivers behind a recent uptick in volatility in UK assets more generally of late.Then they turn to the US, where they discuss the recent nomination of Kevin Warsh to replace Jerome Powell when his leadership term at the Fed ends in May – and the potential impact on monetary policy and Fed independence. Finally, they take a closer look at the ECB’s latest rates hold, Japan’s lower house elections, and the impact on global FX dynamics.You can also find this episode of The Currency Exchange on Spotify and Apple Podcasts. This episode was recorded on 5 February 2026.For any terms used please refer to this glossary https://www.natwest.com/corporates/insights/markets/glossary.htmlPlease view our full disclaimer here: https://www.natwest.com/corporates/disclaimer.html