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- US gold price hits record high as investors respond to President Trump's economic policies
US gold price hits record high as investors respond to President Trump's economic policies
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Gold prices reached a new record on Tuesday, while the dollar continued to weaken, and equities fluctuated. Additionally, there is growing concern among investors due to the potential removal of the US Federal Reserve's chairman, Jerome Powell, by the US President.
The first volley on Thursday had little market reaction, but Monday's second barrage has seen an intensification of the 'sell America trade'.
Whether or not President Trump is legally able and willing to move against the US Fed, the jousting underscores the loss of US exceptionalism and the very real policy risk for investors.
Were Powell to be fired, the initial reaction would be a huge injection of volatility into financial markets, and the most dramatic rush to the exit from US assets that it is possible to imagine.
Lack of certainty is sending investors right into the arms of traditional safe haven assets, with gold and the Japanese yen both cashing in on the drama.
US Economy
- US Federal Reserve maintains pause in rate cuts amid uncertainty over inflation and unemployment risks
- US economy contracts in first quarter
- US President Trump reaffirms commitment to not terminating Federal Reserve chairman amidst ongoing economic disputes
sources
perspectives
countries
organizations
- 1.Federal Reserve System
- 2.European Central Bank
- 3.Hargreaves Lansdown
- 4.International Monetary Fund
- 5.National Australia Bank
- 6.Pepperstone
- 7.Republican Party
- 8.Truth Social