Several additional points regarding the incoming Federal Reserve Chairman, Warsh: First, the risks to gold. Warsh's policy—interest rate cuts coupled with balance sheet reduction—aims, in part, to prevent dollar devaluation and control inflation. One reason for gold's rise is dollar inflation, but this reason may have weakened significantly. One of the conditions for continued gold price increases may no longer exist. Second, Warsh's direction. It cannot be simply summarized as hawkish or dovish. His combination of "interest rate cuts + balance sheet reduction" breaks the previous "single-thread" thinking of the Fed's monetary policy of easing or tightening. Third, Warsh's background. Like Powell, he holds a doctorate in law, but Powell has a bachelor's degree in political science and his work in finance mainly involves financing and M&A (likely also primarily legal), lacking experience in macroeconomics and finance. Warsh holds a bachelor's degree in public policy (with a focus on economics and statistics) and has taken courses related to debt capital markets at Harvard Business School and MIT Sloan School of Management. He previously served as an executive director in the mergers and acquisitions (M&A) department, a special assistant for economic policy in the Bush administration, and a member of the Federal Reserve Board of Governors during the subprime mortgage crisis. He resigned due to dissatisfaction with Bernanke's QE policy. Warsh's background and macroeconomic management capabilities may be superior to Powell's. Fourth, the turning point of the Federal Reserve. From the end of the gold standard in the last century, to Bernanke's QE in 2008, and then to Powell's unlimited QE in 2020, the dollar is gradually heading towards a state of unchecked growth. Warsh's combined policy theoretically has the potential to change this trend, or at least be a good start; the specifics depend on the quantitative implementation of the policies. Fifth, the change of chairman and Powell's future. After the president nominates a Federal Reserve chairman, the Senate must confirm him before he takes office. Furthermore, if Powell no longer serves as chairman, he may continue to serve as a member of the Federal Reserve Board of Governors, becoming a "shadow chairman." If Trump nominates Hassett, the next move will likely be characterized by a clear easing policy, which may also affect the independence of the Federal Reserve. The Senate's stance is uncertain, and Powell may not completely leave the Federal Reserve. However, Warsh's policies and resume suggest he won't blindly pursue loose monetary policy, nor does he seem likely to submit to Trump. Therefore, the probability of Senate approval and Powell's complete departure is higher. Sixth, Trump's ideals. Warsh's "interest rate cuts + balance sheet reduction" combination reduces the issuance of base money but accelerates money creation. Based on this, commercial banks and the market will undergo natural selection, thereby promoting a market-oriented supply-side reform. As I've said more than once: the development and progress of this world has never been driven by demand, but by supply. Therefore, Warsh's policy direction is very much in line with Trump's MAGA. Overall, Warsh's abilities may surpass Powell's. After taking office, he will attempt to lead the Federal Reserve, US monetary policy, and even the entire US economy onto a new path. As for the specific results, the quantitative implementation results of the policies… after all, different degrees and speeds of balance sheet reduction will have different impacts.

I mean he'll be in power soon 🤣 Once he's in power, we'll see, he'll be cutting interest rates on one hand and tightening the balance sheet on the other.

He only took office in June.