Fed Nominee Warsh Triggers Precious Metals Selloff; Economist Warns Rate Hikes Unlikely Amid 120% GDP Debt

GateNews
According to Mark Thornton, a senior researcher at the Ludwig von Mises Institute, Federal Reserve chair nominee Kevin Warsh prompted sharp declines in precious metals on May 27, which Thornton described as the "largest market manipulation" of gold and silver. He noted that U.S. debt has exceeded 120% of GDP, making the anticipated hawkish rate-hiking cycle difficult to sustain without significantly raising financing costs and damaging economic growth. Thornton also warned that elevated valuations—with Buffett indicators and Case-Shiller metrics near record highs—reflect credit-driven growth benefiting large financial institutions while straining consumers through higher inflation.
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