Despite this, Torres adds that Warsh has recently shifted the needle towards Trump’s preference for lowering borrowing costs, a move that the economist notes may well have been instrumental in the president’s selection.
Following US President Donald Trump’s announcement to nominate Kevin Warsh as the next chair of the US Federal Reserve (US Fed) on Jan 30, gold prices have fallen after steadily rising to all-time highs over the past year, declining 4.4% to US$4,680.76 ($5,951.25) per ounce on Feb 2 as at 9.21 am Singapore time.
Interactive Brokers senior economist Jose Torres notes that new chair-elect Warsh is “historically a hawk” and has maintained a more disciplined approach to monetary policy characterised by higher real rates and a limited balance sheet.
