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yesterday

Warsh Pick to Lead Fed Lifts Dollar as Gold and Silver Slide

Market participants read the choice as reinforcing the Fed’s autonomy, reducing the appeal of safe‑haven metals.

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Al cierre del parqué neoyorquino el selectivo S&P 500 sumó un 0,54% y el tecnológico Nasdaq creció 0,56%. Photographer: Michael Nagle/Bloomberg
Kevin Warsh, durant una roda de premsa a Londres, el 2014. | ALASTAIR GRANT / AP

Overview

  • President Trump announced Friday that he chose Kevin Warsh to replace Jerome Powell as Federal Reserve chair.
  • Gold fell from $5,639 per ounce on January 29 to around $4,700 on Monday, while silver dropped from about $120 to roughly $80.
  • The dollar’s global index rose about 0.52% on Monday, a move that typically pressures commodities.
  • Felipe Mendoza of IMB Capital Quants said the nomination ends months of concern over a weakening of Fed independence, curbing demand for safe‑haven assets.
  • Market commentary portrays Warsh as open to rate cuts yet firm on balance‑sheet tightening, a mix seen as supportive of a stronger dollar.