The gold rush has gone bust. We’ve seen a savage sell off in precious metals, just after seeing some shiny record highs. Kevin Warsh becoming the next US Fed chair has removed much of the fear within markets around diminished Fed independence.

Markets are still digesting the news of Trump’s pick for Fed chair. Warsh has a reputation as a monetary hawk. And despite recently supporting lower near-term rates, markets are picking that he may return to his hawkish roots. Especially because of his strong advocacy for shrinking the Fed’s balance sheet.

Tune in as we discuss our thoughts on quantitative tightening, the anti-trump trade, yield curves, and the diversification out of US assets.

Hosted by Jarrod Kerr, Mary Jo Vergara and Sabrina Delgado.

Follow our economic commentary & insights here: https://www.kiwibank.co.nz/business-banking/thrive-hq/kiwi-economics/commentary-insights/

Any views or information shared in this podcast, while given in good faith, aren't necessarily the view of Kiwibank.