HUGE news - Trump has sacked Cook one of the Fed governors. He now has a majority on the Fed however, the FOMC sets monetary policy.

Extract from the the AFR article. The title is spot on (my bolding below).

Note the reference to Turkey - we all know what happened - out of control inflation, low interest rates and the currency collapsed. The USA with Trump seems to on a similar trajectory as the AFR notes.

Gold has not reacted but this is just breaking news and European and US are still asleep. But watch for the POG and silver to go up overnight - how much will it go up? no idea!

Trump’s sacking of Fed governor should shake investors to their core

As Macquarie’s Viktor Shvets says, while “no one has yet declared the end of the Fed’s independence, it is de facto impaired” and becoming more so by the day. Sacking Cook over dubious and unsubstantiated allegation of mortgage fraud made by Trump acolyte Bill Pulte, the leader of the Federal Housing Finance Agency, is another serious blow to the central bank’s credibility.

Shvets says Trump believes the “DoJ are the president’s lawyers, FBI are his police officers and the Fed is his bank. This largely eliminates decades of evolution of independent bureaucracy, with its benefits of impartial advice and transparent oversight, as a precaution against capricious executive actions and public corruption.

“It is moving the US much closer to personality-driven emerging market policies and the way nations like Hungary or Turkey are governed.”