Core Viewpoint - The nomination of Kevin Warsh for Fed Chair has led to significant market reactions, particularly in gold and silver, indicating a potential shift in monetary policy and investor sentiment towards inflation and quantitative easing [1][10]. Market Reactions - Gold and silver experienced extreme volatility, with silver prices collapsing by 39% from an all-time high of $121.78 per ounce to a low of about $75, before recovering slightly to $85, marking a 30% decline from the peak [10]. - Gold prices fell by 14% from $5,575 to an intraday low of $4,700, later stabilizing at $4,909, reflecting a 10% drop from the previous day [13]. - The dollar index (DXY) rose by 1.7% from a low of 95.55 to 97.15, indicating a strengthening dollar amidst the market turmoil [14]. Federal Reserve and Monetary Policy - Warsh has consistently criticized the Fed's quantitative easing (QE) policies and the size of its balance sheet, advocating for a reduction in the balance sheet in collaboration with the Treasury to avoid market disruptions [3][7]. - His views align with Treasury Secretary Bessent, who has also criticized the Fed for creating "perverse incentives" and failing to control inflation effectively [4]. - Warsh's historical stance as an inflation hawk suggests he may continue to advocate for tighter monetary policies, although the impact of technology on inflation remains uncertain [8][9]. Investment Sentiment - The recent market movements reflect a classic mania in silver, which had surged by 317% over the past nine months and 500% since early 2023, leading to profit-taking and subsequent price drops [11][12]. - Stocks showed minimal reaction to the Warsh nomination, with the S&P 500 and Nasdaq Composite experiencing slight declines, indicating that investors may be more focused on other factors such as inflation data and corporate earnings [17]. - The Treasury market remained largely unaffected by the nomination, with yields remaining stable [18]. Cryptocurrency Market - Cryptocurrencies, particularly Bitcoin and Ethereum, faced declines following the Warsh nomination, with Bitcoin dropping from $90,000 to around $84,000, reflecting a 31% decrease from its all-time high [19].

Core Viewpoint - Bitcoin has fallen to a two-month low due to speculation regarding potential tightening of cash in the financial system by the next chair of the U.S. Federal Reserve, which has negatively impacted cryptocurrencies and strengthened the dollar [1] Group 1 - Bitcoin's price decline is attributed to market speculation about the U.S. Federal Reserve's monetary policy [1] - The anticipated tightening of cash in the financial system has led to a decrease in cryptocurrency values [1] - The strengthening of the dollar is a direct consequence of the speculation surrounding the Federal Reserve's next chair [1]

The dollar is being undercut by risks to the Federal Reserve’s independence, a growing US budget deficit, fiscal profligacy, and widening political polarization. In addition, the dollar is weighed down by speculation that the US might coordinate FX intervention with Japan to boost the yen, which would dovetail with Mr. Trump’s apparent view that a weak dollar is good for the US as a stimulus to US exports. The yen rose to a 2.75-month high against the dollar on Tuesday as US authorities reportedly contacted ...

The dollar is also under pressure due to US political uncertainty after President Trump on Saturday threatened 100% tariffs on US imports from Canada if Canada signs a trade agreement with China. Canada is seeking other trade partners amid President Trump’s liberal use of tariffs during this second administration.The risk of another partial US government shutdown is also weighing on the dollar. Senate Democrats threatened to block a government funding deal over Department of Homeland Security/ICE funding af ...

The dollar strengthens, while tech earnings loom over the markets. ...

In addition, the dollar is weighed down by speculation that the US might coordinate FX intervention with Japan to boost the yen, which would dovetail with Mr. Trump's apparent view that a weak dollar is good for the US as a stimulus to US exports. The yen rose to a 2.75-month high against the dollar on Tuesday as US authorities reportedly contacted market participants last Friday to check dollar/yen prices, a possible precursor to intervention.The dollar is also under pressure due to US political uncertaint ...

Monex USA华盛顿交易主管Juan Perez表示，在市场不确定性环绕的背景下，作为关键金融权威机构， 美联储保持谨慎、暂不调整利率是合乎情理的。委员之间仍然缺乏共识，因此这一决定在一定程度上有 助于缓解自1月20日以来美元承受的压力。我们认为，美联储的政策路径仍将相当难以预测。 ...

Key Takeaways Dollar weakness is a "tailwind" for gold prices, Morgan Stanley's metals and mining strategist says. Precious metals experts see gold's rally continuing, but they see a chance of near-term volatility as investors take profits. One asset's weakness can be another's strength. That concept has added fresh complexity to rising investor demand for gold. Case in point: Spot gold prices continue to rally, breaking past $5,300 on Wednesday following a drop in the greenback yesterday. While it ...

WASHINGTON, Jan 28 (Reuters) - The U.S. has a strong dollar policy and that means setting the right fundamentals, U.S. Treasury Secretary Scott Bessent said on Wednesday, while ​denying that Washington was intervening in currency markets to support the Japanese yen. Asked on ‌CNBC if the U.S. was intervening to strengthen the yen, Bessent said, "Absolutely not." Pressed if that was something the U.S. ‌planned to do, Bessent said, "We don't comment other than to say we have a strong dollar policy." Bes ...

Trump Extends Dollar Slump, and the Buck Doesn't Stop Here - 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.# Trump Extends Dollar Slump — and the Buck Doesn't Stop HereBy [Martin Baccardax]ShareResize---ReprintsIn this article[DX00][GC00] [SP ...