Stocks fell, silver and gold plunged and the dollar strengthened after investors finally learned President Trump's pick to run the Federal Reserve: former Fed governor-turned-critic Kevin Warsh.

Major U.S. indexes fell, led by the Nasdaq composite, which finished 0.9% lower. The dollar gained and longer-term bond yields edged higher. Precious metals plummeted, with gold down 11% and silver dropping 31%, both suffering their worst one-day slides since 1980.

Some market participants see Warsh as a relatively safe option, given his Fed experience and his track record as an inflation hawk, or supporter of tight monetary policy. That could make him more resistant to calls from the administration to slash interest rates, a prospect that helped the dollar and hammered precious metals Friday.

Trump, who settled on Warsh after a monthslong search, said he had "no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best."

Economists, investors and executives generally welcomed the pick. Mark Carney, the Canadian prime minister and former central banker, called him a "fantastic choice."

However, Warsh has recently contended that AI and deregulation could help hold down inflation. He also wants the Fed to have a much smaller balance sheet.

A criminal investigation by the Trump administration into Jerome Powell, whose term as Fed chair runs until mid-May, could complicate matters. Sen. Thom Tillis (R., N.C.) said he would oppose Warsh's confirmation until the Powell probe is resolved.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires