Fort Worth (PRWEB) April 03, 2014
A recent Kitco News article revealed that a member of the Federal Reserve sent a letter of resignation to President Obama this week after less than two years on the job, and Certified Gold Exchange vice-president Hank White believes the vacancy could create extreme volatility within precious metals markets. White said Thursday from his Fort Worth office that the vacancy left by Jeremy Stein, as well as the person who eventually fills the position, could wreak havoc on gold and silver prices or cause them to skyrocket.
“President Obama could fill this spot with someone who wants to keep interest rates low, which in theory would boost the economy by creating jobs because companies can borrow money for practically nothing,” White said. “That could cause the gold spot price to fall dramatically, at least until inflation because so obvious to everyone that gold would become the only logical solution. If President Obama selects someone who believes in raising interest rates it could crash the stock market and cause a run on banks, and in that scenario gold could break through any ceiling imaginable, as it did during the rising interest rate cycle of the 1970s and early 80s.”
The Federal Reserve has seen a slew of departures recently. President Obama has already nominated Stanley Fischer to take new chair Janet Yellen’s place as vice chairman. Lael Brainard is also up for nomination, as is Jerome Powell. Elizabeth Duke left the Federal Reserve Board in 2013 and Obama has yet to nominate someone to fill that position.
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