Markets Signal Doubt Over Trump’s Pick of Waller for Fed Chair

Global financial markets are flashing warning signs over President Trump’s nomination of Christopher Waller as Federal Reserve chair, with equities, bonds, and precious metals all reacting negatively. Investors are repricing interest rate expectations, anticipating that under Waller, rates may stay elevated through summer 2026—contrary to the White House’s preference for easier monetary policy. Gold posted its steepest single-day drop since the 2008 financial crisis, falling 13% from its late-January peak, while silver tumbled nearly 30%. The selloff in commodities, alongside weakness in Bitcoin and U.S. stocks, reflects growing concern over a prolonged high-rate environment. The S&P 500 faced renewed pressure, with intraday losses exceeding 40 points despite a modest 1.37% gain in January. Analysts note Waller remains a mainstream central banker, but his hawkish leanings could delay rate cuts that previously buoyed equities. With inflation reaccelerating and the 2026 midterms potentially shifting control of the House to Democrats, fiscal stimulus prospects—and market sentiment—are increasingly uncertain.