Fed won’t hike but hold, Warsh may have started too hawkish, and U.S. policy is driving sovereign gold demand – Natixis’ Christopher Hodge - KITCO
Fed won’t hike but hold, Warsh may have started too hawkish, and U.S. policy is driving sovereign gold demand – Natixis’ Christopher Hodge - KITCO
Source: KITCO
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DW NOTE
Kevin Warsh inherited a Fed that had already let PCE inflation run to 3.6% — eighteen months above target with energy chokepoints still unresolved. If he opened hawkish and now faces a hold, that's not miscalibration, that's the policy lag catching up to rhetoric. Sovereigns buying gold at $4,034 after watching it hit $5,318 in January aren't hedging U.S. policy risk — they're buying a 24% markdown on an asset that spent six months proving central banks can't contain the fundamentals.