President’s top candidate to lead Fed knows all about gold market rigging
President’s top candidate to lead Fed knows all about gold market rigging by Chris Powell – GATA
Dear Friend of GATA and Gold:
President Trump’s top candidate for the next chairman of the Federal Reserve Board appears to be former board member Kevin M. Warsh, who has complained repeatedly about the Fed’s manipulation of markets and in 2009 revealed to GATA that the Fed has secret gold swap arrangements with foreign banks.
According to news reports like this one from Bloomberg today —
— Warsh met Thursday with the president and Treasury Secretary Steven Mnuchin to discuss the Fed chairman’s job.
In September 2009, adjudicating GATA’s Freedom of Information Act request to the Fed for access to documents involving gold swaps, Warsh wrote:
“In connection with your appeal, I have confirmed that the information withheld under Exemption 4 consists of confidential commercial or financial information relating to the operations of the Federal Reserve banks that was obtained within the meaning of Exemption 4. This includes information relating to swap arrangements with foreign banks on behalf of the Federal Reserve System and is not the type of information that is customarily disclosed to the public. This information was properly withheld from you.”
Warsh’s letter is posted at GATA’s internet site here:
In an essay published in The Wall Street Journal in December 2011, Warsh complained that “policy makers are finding it tempting to pursue ‘financial repression’ — suppressing market prices that they don’t like,” adding, “Efforts to manage and manipulate asset prices are not new.”
That essay is posted at GATA’s internet site here:
Last month in another essay in The Wall Street Journal, headlined “The Federal Reserve Needs New Thinking” —
— Warsh wrote: “The Fed seeks to fix interest rates and control foreign-exchange rates simultaneously — an impossible task with the free flow of capital.