The nomination of Kevin Warsh as Chairman of the Board of Governors of the Federal Reserve System

Warsh’s views are extremely “hawkish” in fed-speak, that is, of the Austrian or so-called “freshwater” or Chicago school of macroeconomics; after Ludwig von Mises as opposed to John Maynard Keynes’ school of the “dovish” fed establishment.

Trump would decide whether to investigate Fed pick Warsh over refusal to cut rates: Bessent

Treasury Secretary Scott Bessent left the door open to suing Kevin Warsh as Fed chair in testimony to the Senate Banking, Housing and Urban Affairs Committee.

CNBCJustin Papp

Investors in gold are often ideologically supportive of von Mises monetary policies rather than Keynesianism, but hawkish monetary and fiscal policies tend to be a real bear for gold investors, if actually put into effect.

Gold is always “hard” or “tight” money, and loose monetary and fiscal policies drive hard-money investors toward gold and precious metals. However when hawkish fed policies come into effect, investors are tempted to sell their holdings in precious metals and lend out money at the higher interest rates which the markets will bear under a fed hawk.

Solid gold isn’t very easy to “lend” or to get it back if it is lent out. Selling pressure on precious metals will normally tend to drive down the price of gold and lead to less severe interest rate increases as gold sellers bid up bond auctions under hawkish fed policies.