Mark Thornton, a Senior Research Fellow at the Ludwig von Mises Institute, has criticized the nomination of Kevin Warsh as Federal Reserve Chair, citing its negative impact on gold and silver prices. Thornton described the price decline as the "greatest malicious suppression" of the precious metals market, suggesting that major banks might have been forewarned. He highlighted the U.S. market's overvaluation, driven by low interest rates and monetary expansion, which benefits large financial institutions while increasing inflationary pressures on consumers.
Thornton also expressed skepticism about the feasibility of a hawkish interest rate hike cycle, given the U.S. debt level exceeding 120% of GDP. He warned that such a move could significantly raise financing costs and harm the economy. Additionally, he noted that rising tensions in the Middle East and disruptions in the Strait of Hormuz are pushing up energy and commodity prices, bolstering demand for physical assets like gold and silver.
Economist Criticizes Kevin Warsh's Nomination for Impact on Gold and Silver
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