Global markets faced renewed pressure on Friday as investors digested signals around the next US Federal Reserve chair, escalating trade threats from President Donald Trump, a deepening selloff in cryptocurrencies, and policy moves in Indonesia following sharp equity volatility.

Stocks across Asia fell sharply while the US dollar and Treasury yields rose after President Donald Trump said he had firmed up his choice for the next Federal Reserve chair, with reports pointing to Kevin Warsh as the likely nominee.

MSCI’s broadest index of Asia-Pacific shares outside Japan dropped as much as 0.7%, extending the previous day’s declines and marking its biggest one-day slump in the past month.

S&P 500 e-mini futures fell 0.39%, while Nasdaq e-mini futures slid 0.5%.

Market moves accelerated after Reuters reported that Warsh had visited the White House on Thursday, citing a source familiar with the matter.

Bloomberg News separately said the Trump administration was preparing to nominate him as the next Fed chair.

While Warsh is seen as supportive of lower interest rates, investors focused on his views around balance sheet restraint. “Warsh is on record as saying he prefers lower rates,” Damien Boey, portfolio strategist at Wilson Asset Management in Sydney, said in a Reuters report. “But the trade-off that he makes with lower rates is that he wants the Fed to have a smaller balance sheet.”

The US dollar index rose 0.3% to 96.481, reversing some recent weakness. “We’ve definitely seen some dollar buying straight away on the back of it,” said Tim Kelleher, head of institutional FX sales at Commonwealth Bank in Auckland. “He’s known to the markets and will probably calm things down slightly.”

The yield on the 10-year US Treasury climbed 4 basis points to 4.265%.

Fed funds futures now imply an 86.6% probability that the central bank will keep rates unchanged at its March meeting.

Separately, Trump escalated tensions with Canada by saying he would decertify “all aircraft made in Canada” and impose a 50% tariff on those planes unless American-made Gulfstream jets are certified in Canada.

“Canada is effectively prohibiting the sale of Gulfstream products in Canada through this very same certification process,” Trump wrote on Truth Social. “If, for any reason, this situation is not immediately corrected, I am going to charge Canada a 50% Tariff on any and all Aircraft sold into the United States of America.”

The comments specifically referenced Bombardier’s Global Express business jets, though Trump did not clarify the legal mechanism for decertification.

No executive order has been released, and aviation certification decisions are traditionally handled by the Federal Aviation Administration.

“Using aircraft safety as a tool in a trade war is just an incredibly bad idea,” said Richard Aboulafia, managing director at AeroDynamic Advisory in a CNN report.

Canada-made CRJ regional jets are widely used by US airlines on feeder routes.

According to Cirium, 648 such aircraft operate in the US, accounting for more than 2,600 flights and 175,000 passenger seats daily. “It would be a transportation disaster,” Aboulafia said, if all Canadian-made aircraft were grounded.

Cryptocurrencies extended losses, with Bitcoin falling as much as 3.9% to $81,102 in early Asian trading, its weakest level since Nov. 21.

The token is now down more than 34% from its October peak, with more than $1.5 billion in bullish positions liquidated over the past 24 hours, according to CoinGlass.

At the time of writing, Bitcoin was trading at $83,382, down 5% in the last 24 hours.

US-listed spot Bitcoin ETFs have posted three straight months of net outflows, draining $4.8 billion, Bloomberg data show.

Bitcoin’s slide has contrasted sharply with gains in gold.

“Suddenly, cryptocurrencies no longer appear to be an alternative to fiat money and a hedge against the not-so-responsible financial policies of major countries,” said Alex Kuptsikevich, chief market analyst at FxPro, in a Bloomberg report.

Indonesia said it will accelerate plans to demutualize the Indonesia Stock Exchange this year following a two-day equity rout triggered by an MSCI warning of a potential downgrade.

The reform aims to strengthen governance and attract new investors, Coordinating Minister for Economic Affairs Airlangga Hartarto said.

Officials are also preparing measures to boost confidence, including raising insurer allocation caps to capital markets.

Despite the volatility, the government said economic fundamentals remain intact, citing resilient domestic demand and ongoing structural reforms.

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