The Hill reports that the Senate Republican sources expect President Trump to withdraw his nomination of Judy Shelton to serve on the Federal Reserve Board following bipartisan resistance on Capitol Hill.

Key notes

The White House has not made a final decision since Trump would first need to sign off on the reversal, but Republican sources say it would be “desirable” for her to withdraw from consideration and that her nomination is “trending” in that direction.

“She’s being pulled,” said a Republican senator.

Senate GOP aides have indicated to colleagues privately that they expect Shelton to withdraw, according to one Senate aide familiar with the discussions.

If Shelton pulls out, she would would be Trump's third Fed nominee derailed by Senate Republican opposition, and the fifth overall, counting informal picks as well.

FX implications

There was no reaction to this although it underpins the notion among economists is that the Fed will now pause in 2020 after having cut rates three times in 2019.