US President Donald Trump put months of anticipation to rest after announcing Kevin Warsh as the successor to Federal Reserve Chair Jerome Powell on Friday.
Warsh, who was also part of Fed's Board of Governors during the George Bush era, has in recent months aligned closely with Trump's views of favouring lower interest rates.
The Bush era was largely seen as a period of global financial crisis.
However, the next Fed chair is widely known for his hawkish monetary stances and is expected to hold rates steady if inflationary pressures mount.
Warsh is viewed as an advocate of tighter monetary policy, and is less radical than his dovish counterparts, including Kevin Hassett, Christopher Waller and Rick Rieder.
Notably, Warsh had come close to being nominated as the chair back in 2017, when he lost the race to Powell.
The new Fed chair was serving as the Shepard Family Distinguished Visiting Fellow in Economics at the Hoover Institution, and Lecturer at the Stanford Graduate School of Business. He is also a Partner of Stanley Druckenmiller at Duquesne Family Office LLC. Warsh completed his A.B. from Stanford University, and J.D. from Harvard Law School.
The former Fed governor also issued an Independent Report to the Bank of England, proposing reforms in the conduct of Monetary Policy in the United Kingdom.
Dent On Safe Havens
The US spot silver rates took a beating ahead of the nomination, plunging 15% to hit a low of $95 an ounce. The white metal had closed at $115.6 an ounce the previous day.
On the multi commodity exchange (MCX), silver futures crashed by more than 15% or Rs 45,000 to about Rs 3.5 lakh per kg, after peaking to record high of Rs 4,20,048 per kg on Wednesday.
Gold also slipped nearly 9% to $4,941.79 an ounce.
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