
President Donald Trump’s January 30 announcement of Kevin Warsh as his nominee for Federal Reserve Chairman has triggered a set of risk-off moves across asset classes - as investors digest the implications of Warsh’s long-time reputation as an “inflation hawk” despite Trump’s stated desire for lower rates.
As a result, we saw a stunning sell-off in precious metals, with gold diving 12% and silver crashing by 30%, while the USD staged its largest rally since May.
Global equities, including the S&P500 ended lower while bond markets remained mostly mixed, as futures pricing still reflect two rate cuts by the end of 2026.
Against a complicated backdrop of AI disruption and significant geopolitical uncertainties, what can the market expect from a Fed Chair who has historically leaned hawkish but now appears increasingly aligned with the "Trump 2.0" policy agenda?
What will be the immediate and long-term implications for asset prices?