Gold and USDJPY have had a busy last 60 minutes as they swung wildly on North Korea headlines but Gold tumbled back below $1300 when Bloomberg reports that Stanford’s John Taylor is said to impress President Trump, as Warsh’s star fades.
- *WARSH AND TAYLOR BOTH REMAIN ON SHORTLIST, PEOPLE FAMILIAR SAY
- *TRUMP INTERVIEWED TAYLOR LAST WEEK WITH CHIEF OF STAFF KELLY
- *KEVIN WARSH IS SAID TO SEE STAR FADE IN WHITE HOUSE FED SEARCH
- *STANFORD’S TAYLOR IS SAID TO IMPRESS TRUMP FOR FED CHAIR
Which jumped Taylor up to 3rd place with the bookies…
And the reaction was a clear dollar positive, gold negative…
The dollar strength is likely related to the fact that according to John Taylor’s “Rule”, the current Fed Funds rate – based on inflation and unemployment – should be around 5.74%!!
Additionally, Politico reports that Trump is said to plan an interview with Janet Yellen later this week.