Warsh Stresses Price Stability, Pressuring Gold Lower

After the Fed kept rates steady yet signaled a hawkish stance with potential for at least one hike by year-end, gold shed over 1% to hit session lows. Newly installed Chair Kevin Warsh stressed inflation control as the bank’s “North Star,” with spot gold last at $4,267.30 an ounce, up 0.27% early in Asian trade. Warsh said delivering price stability fulfills Congress’s mandate. Economist Bill Adams observed the policy focus has shifted from possible cuts early in 2026 to a hike mid-year. Warsh unveiled five task forces on communications, the balance sheet, data sources, productivity, and the inflation framework. CIO Chris Zaccarelli noted this could reduce transparency, revise targets, and gradually shrink the balance sheet while managing rates.