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Trump nominates hawkish Kevin Warsh to lead Fed, sparking market jitters over tighter policy.
President Donald Trump nominated Kevin Warsh, a former Federal Reserve governor known for his hawkish stance on inflation, to succeed Jerome Powell as Fed chair.
The announcement triggered market volatility, with stocks declining, the dollar rising, and gold and silver plunging, reflecting investor concern over tighter monetary policy.
Despite Warsh’s reputation as a moderate on rates and his past support for lower borrowing costs, his history of advocating for disciplined monetary policy and balance sheet reduction has fueled uncertainty.
Markets remain cautious, with expectations for a rate cut before June unchanged, and the Senate confirmation process now underway amid potential political hurdles.
Trump nombra a Kevin Warsh para liderar la Fed, provocando nerviosismo en el mercado por una política más estricta.