Trump's Fed Pick Kevin Warsh: Bad News for Gold, Bitcoin, Equities?

• Donald Trump nominated former Federal Reserve Governor Kevin Warsh as the next head of the U.S. central bank, replacing Powell.
• Warsh is seen as a moderate, favoring lower interest rates but reluctant to use aggressive monetary stimulus, and advocates for a significant reduction of the Fed's balance sheet.
• The prospect of a more hawkish Fed under Warsh led to a sharp profit booking in metal stocks and a 4% fall in gold prices due to fears of tighter monetary policy.
• Expectations of monetary easing were scaled back, putting pressure on growth-sensitive assets like Bitcoin, which thrive on abundant liquidity and lower borrowing costs.
• Equities also faced downward pressure, with Sensex and Nifty settling lower, as tighter monetary conditions can increase funding costs and slow economic growth.

Why It Matters: Trump's Fed pick Kevin Warsh, known for a hawkish stance, signals tighter monetary policy, impacting precious metals, Bitcoin, and equities negatively.