USD Steady as New Fed Chair Warsh Signals Hawkish Tone Amid Iran Nuclear Talks

The US dollar held firm heading into the weekend as newly appointed Fed Chair Kevin Warsh struck a consequential tone in his early remarks, while hawkish comments from Fed Governor Waller reinforced expectations of a prolonged restrictive monetary policy stance. US equities remained positive but pulled back from session highs as optimism over Iran nuclear negotiations faded. Sky News Arabia reported that Tehran talks had reached an agreement on nuclear issues, though WSJ sources indicated mediators were rushing to prevent military escalation, keeping geopolitical risk elevated. The mixed signals weighed on risk appetite into the close. On the energy front, Baker Hughes reported total rig counts rising to 758, up 5 for the week, suggesting steady US oil production momentum. President Trump publicly endorsed Warsh, expressing confidence in his leadership at the Federal Reserve. For forex traders, the hawkish Fed rhetoric supports near-term USD strength, particularly against risk-sensitive currencies. However, any escalation in Iran tensions could trigger safe-haven flows into JPY and CHF, while a confirmed diplomatic resolution may pressure the dollar as risk sentiment improves.