Hello,

The Federal Reserve’s role has been a recurring concern for markets over the last year, which is why US President Trump’s pick to replace Jerome Powell caught much of the market off guard. On Friday, Trump nominated Kevin Warsh, a Fed governor during the Global Financial Crisis, to take over in May. Warsh is known for being more hawkish on inflation, which has lifted expectations for tighter monetary policy.

The news triggered a sharp sell-off in safe haven assets that had rallied throughout 2026 so far. Gold recorded its steepest single-day decline since 1983, falling 8.0% in euro terms. Silver, which has been more sensitive to the recent precious metals sentiment, fell 25.6% in euro terms. Losses for both extended over the weekend before rebounding on Monday morning.

The announcement came after the Fed’s decision on Wednesday to keep rates on hold, as widely expected. Fed Chair Powell noted that “economic activity has been expanding at a solid pace” and that the FOMC does not believe current policy is “significantly restrictive at this time.” US consumer confidence in January fell to a 12-year low as another government shutdown began on Saturday, though it is expected to end this week.

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Smart Financial Insurance Limited trading as Smart Financial is regulated by the Central Bank of Ireland. Past performance is not a reliable guide to future performance. The value of your investment may go down as well as up.