Institutions: The market views Warsh as a "moderate hawk" and a guardian of independence.

Kristina Clifton, senior economist and senior currency strategist at the Commonwealth Bank of Australia, said the dollar did indeed seem to rise on the news, which she believes is because the market generally perceives Warsh to be slightly less dovish than another candidate, Hassett. Therefore, today's market volatility is merely a minor fluctuation based on this, and Warsh may be better positioned to uphold the Fed's independence than some other candidates. "We haven't heard much from him yet, but he has made some comments that essentially express a desire for strict adherence to the Fed's responsibility to control inflation. He has also served as a Fed governor and does not support quantitative easing, so this may again indicate that he is slightly more hawkish than some other potential candidates." (Jinshi)