Core Viewpoint - The market reaction to Kevin Worsh's appointment is generally positive, with expectations that he will lead the Federal Reserve towards a more independent and pragmatic approach to monetary policy [1][3][8] Group 1: Federal Reserve's Policy Direction - Worsh is expected to move away from reliance on public balance sheets, aiming to utilize private sector balance sheets instead, which could lead to a more normalized policy environment [5][6] - There is an understanding that the Federal Reserve's role has limitations, and Worsh is not likely to push the Fed towards non-monetary issues such as climate change or diversity, equity, and inclusion (DEI) [7] Group 2: Market Implications - The recent parabolic moves in precious metals indicate a major correction, which could influence broader financial markets, particularly equities [2] - The strengthening of the U.S. dollar against major currencies suggests a collective relief among market participants regarding Worsh's appointment, despite a downturn in the stock market [8]

What a Warsh Fed Would Mean for Interest Rates, Inflation Policy - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.# What a Warsh Fed Would Mean for Interest Rates and Inflation PolicyBy [Megan Leonhardt]ShareResize---ReprintsIn this article[UB ...

RT Ronnie Stoeferle (@RonStoeferle)At current prices, gold covers just 16% of the Fed's balance sheet. That's the same level as 1971, right before the dollar was cut loose from gold.History shows the market demands at least one-thirdbacking in normal times. And these are clearly not normal times.... https://t.co/m1pBaF68Uq ...

Core Views - Newly confirmed Fed Governor Steven Myron expresses a differentiated view on monetary policy, advocating for a 50 basis point cut instead of the quarter-point cut favored by the majority of the committee [2][12][8] - Myron argues that there is no material inflation from tariffs, as import-intensive core goods have not inflated at a higher rate than overall core goods [3][4] - He believes that recent changes in border policy have been significant inflation drivers, with a potential disinflationary effect due to negative net migration [5][7] Monetary Policy Insights - Myron's perspective includes a belief that the current monetary policy is too restrictive, which could lead to risks in meeting the employment mandate [19][42] - He plans to provide a detailed accounting of his economic views in an upcoming speech, emphasizing the need for thoroughness in his analysis [9][16] - The Fed's current policy is seen as appropriate by Chair Powell, who indicates that there was not widespread support for a more aggressive cut [11][12] Economic Growth and Labor Market - Myron anticipates better economic growth in the second half of the year, attributing earlier weaknesses to uncertainties around trade and tax policy [22][23] - He acknowledges recent revisions indicating a weaker labor market than previously thought, which raises concerns about the risks of a restrictive monetary policy [41][42] Balance Sheet and Interest Rates - Myron discusses the size of the Fed's balance sheet, suggesting that it should be determined by the regulatory regime rather than as a target in itself [47] - He expresses that the Fed should not engage in credit allocation across sectors, maintaining focus on its mandates of maximum employment and stable prices [48] Tariffs and Inflation - Myron challenges the notion that tariffs are driving significant inflation, arguing that the burden of tariffs is often borne by exporters rather than U.S. consumers [52][54] - He emphasizes that relative price changes do not equate to macroeconomically significant inflation that would warrant a monetary policy response [59][60]