Paul Krugman Says Trump's Pick Kevin Warsh Is 'A Humiliation For The Fed' - State Street SPDR S&P 500 ETF Trust (ARCA:SPY)

Group 1 - Nobel Prize-winning economist Paul Krugman criticized President Trump's nomination of Kevin Warsh as Fed Chair, calling it "a big humiliation for the Fed" [1] - Krugman warned that the biggest risk to the dollar is not a rival currency but the potential for it to be replaced by "nothing," leading to a chaotic international monetary system [2] - He expressed skepticism about Warsh's record, stating he is a "hawk" only when a Democrat is in the White House and described the selection process for Fed Chair as degraded [3] Group 2 - Krugman noted that tariffs have raised prices by about 1% compared to what they would have been without them, ahead of a Supreme Court hearing on Trump's tariff authority [4] - He highlighted a $500-600 billion AI capital expenditure boom that is increasingly risky, with a shift from retained earnings to debt funding [5] - Goldman Sachs forecasts gold could reach $5,400 by year-end, driven by sustained central bank buying, while JP Morgan targets $6,300 with expectations of 800 tons of official-sector purchases in 2026 [5]