Economy News

Trump picks Kevin Warsh for Fed chair; silver crashes about 30% and gold 11% in a day

President Donald Trump named former Fed governor Kevin Warsh on Friday 30 January as his pick to succeed Jerome Powell, whose term as Federal Reserve chair ends in May. Precious metals collapsed. The Associated Press, via Fortune, reports gold futures fell 11.4% to $4,745.10 an ounce and silver 31.4%, days after gold first topped $5,000 and briefly reached about $5,600.

Stocks fell less: the S&P 500 lost 0.4% to 6,939.03 and the Nasdaq 0.9%. The National says the US Dollar Index rose 0.84% to 97.09. Newmont fell 11.5%. Trump wrote on Truth Social that Warsh would be “one of the great Fed Chairs, perhaps the best ever,” The Asia Business Daily reports.

“Warsh is not the Fed's guy, he is Trump's guy” — Thierry Wizman, Macquarie Group, via Fortune

How each outlet framed it

• Fortune (AP) — independence: worries about Trump weakening the Fed had pushed gold up and the dollar down, and a sharp pullback may have been inevitable.
• The National — the dollar and the man: Warsh served at the Fed from 2006 to 2011 and was seen as less dovish than rivals; one strategist called the reaction “likely overwrought”.
• The Asia Business Daily — the Seoul morning view: silver falling below $100 and Trump's praise for his nominee.

Where the numbers differ: the silver drop ranges from 27.7% (spot, Asia Business Daily) to nearly 30% (The National) and 31.4% (AP). For gold, The National's spot price fell 8.5% to $4,866.60, while AP and Asia Business Daily used futures, down 11.4%.

What we don't know yet: how the Senate will vote on Warsh, and whether he will cut rates soon.