US EditionKevin Warsh Is Fighting a Resilient Debasement Trade
Kevin Warsh's nomination eased fears of rate cuts and Fed interference, boosting the dollar and causing gold to drop about 9% and silver nearly 31%, their worst day since 1980.
- On Friday, U.S. President Donald Trump tapped Kevin Warsh to lead the Federal Reserve, prompting investor relief as the U.S. dollar strengthened after the announcement.
- Warsh's record at the Fed from 2006 to 2011 shows he helped design credit market stabilization programs and supports shrinking the Fed's balance sheet, easing fears of rate cuts.
- Safe-Haven assets collapsed, as spot gold dropped about 9% and spot silver plunged 31.4%, wiping more than $US15 trillion from gold and silver prices over 24 hours while bitcoin fell to around $77,250.
- Precious metals extended losses on Monday after last week's sell-off, while major U.S. indexes fell on Friday and trading remained volatile with swings up to 12%.
- Market commentators said the nomination shifted expectations, with Richard Saperstein stating, `Kevin Warsh's nomination for Fed Chair is exactly what markets were hoping for, as he's a steady hand, well known in market circles and is expected to maintain the independence of the central bank, which is critical for markets`.
28 Articles
28 Articles
Since Kevin Warsh's indication of chief Fed, a retaliation in the dollar force has been observed in damage of other currencies.
Did President Donald Trump Just Pour Cold Water on the Gold and Silver Trade With His Nomination of Kevin Warsh as Next Fed Chair?
Key PointsPresident Donald Trump's recent nomination of Kevin Warsh as the next Fed chair has bolstered the U.S. dollar's value.At the same time, the nomination has led to a collapse in precious metal prices, which had been viewed as a hedge against U.S. dollar debasement.While Warsh has been critical of the Fed, many believe he will still be able to retain the Fed's independence.10 stocks we like better than iShares Silver Trust › After months …
Gold metal has lost 23% of last week’s peak, while silver has plummeted more than 60%, in the face of market expectations of a stronger dollar
Gold fell on Monday, pressured by a stronger dollar, as investors awaited the stance of Kevin Warsh, President Trump's nominee to head the Federal Reserve, on interest rates.
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