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Dollar Rallies Most Since May as Trump Taps Warsh: Markets Wrap - BLOOMBERG

JANUARY 31, 2026

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The biggest dollar rally since May accelerated a plunge in precious metals as President Donald Trump announced his pick for the Federal Reserve’s top job: Kevin Warsh, who’s seen as less supportive of deep rate cuts and more worried about inflation. Stocks fell. Bonds were mixed.

As the greenback rose against all major currencies, it pared a January slide. Long-term Treasuries underperformed. Money markets didn’t react meaningfully to the announcement, with traders actually slightly increasing bets on two Fed cuts in 2026. A drop in commodity and tech shares dragged down the S&P 500, which still notched its best month since October.


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