Investors reacted negatively to Donald Trump’s announcement that Kevin Warsh would be the new Federal Reserve chairman.
The following is a summary of the information that you will find on this page.
- Dow Jones Index decreased by over 0.4% on Friday.
- Bitcoin, as well as most other altcoins, also fell.
- The value of these assets has dropped since Donald Trump’s nomination of Kevin Warsh as Fed chair.
The Dow Jones, S&P 500, and Nasdaq 100 indices dropped by over 40 basis points, while the crypto market crash Getting going
BitcoinBTC) moved below $82,000 for the first time in weeks. Ethereum (ETH() fell to $2,700 while the total market capitalization for all coins decreased to $2.8 billion.
Gold and silver fell by more than 6% in the metals market before. Gold fell to below $5,000. silver fell below $100.
Because the market expected the nomination of the President, stocks, cryptocurrency, and precious materials dropped. Wall Street-friendly Rick Rieder His odds of becoming the Fed Chairman have increased since his interview last week. Since his last interview, the odds of him becoming Fed chair have increased.
Warsh the Hawk
Kevin Warsh His past as Fed governor has led to a general consensus that he would be a more traditional Federal Reserve Chairman. His first term was as Fed governor, and he was one of its most prominent hawks. He voted against quantitative easement in 2011, when unemployment was over 9%.
Kevin Warsh has been opposing the Federal Reserve’s quantitative easing and interest rate reduction policies since the Pandemic. Also, he criticized the Fed’s modest rate reductions in 2024.
Warsh may not adopt the more moderate tone that Trump wants. There is also a chance that Warsh will clash with both the Trump administration and financial markets.
If he does this too soon, it will make him look like a Trump puppet that has abandoned their principles. If he keeps rates stable for too long, the president will blast him, just as he did with Powell.
Warsh must convince the other members of Federal Open Market Committee, even though he keeps a dovish voice, to lower interest rates.
Dow Jones Index dropped as well after recent earnings from major companies, such as Apple or Microsoft. Microsoft stock fell over 10% as cloud computing declined. Apple reported strong results, but its stock fell as the company warned about the continuing memory shortage.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: crypto.news
