Warsh Sets the Tone
Markets Tumble as FED chair extols virtues of transparency and accountability
The new FED leader sent markets tumbling by promising to be accountable and transparent while doing a good job! Holy smokes. Markets have accepted no rate cuts and even are pricing in rate hikes.
Reality is that rates have to go a lot lower by fair means or foul.
Along with Trump declaring seized Iranian money not his, this is a clear sign that a financial reset is coming. Maybe to gold too.
London | Brisbane. 15 June 2026.
Seems like markets don’t want the US central bank to do their job properly, find a better measure of inflation than the hugely outdated current models, and be open about everything. Metals, Bitcoin, stocks and bonds all fell sharply.
Luckily Uncle Don was there to fast forward the good news about the Iran agreement, which helped save equity markets ahead of the holiday on Friday.
The bit that really spooked markets was the removal of the possible (in the future) rate cut vibe. Without that glimmer of hope the 2 year yield backed up 20bps but the 10 & 30 years less.
It’s our view that Warsh is doing exactly the right thing, Something that the FED has not been doing for a long time. To get rates down, especially long-term rates then the FED needs to be a lot more credible and courageous. And watching how markets price risk is a really good starting point.
Rates have to go lower despite any amount of inflation and if it takes yield curve control to achieve it then that is what is going to happen. For any chance of escaping from US$40T in debt, those rates have to go down a lot and starting right now.
Surely if you liked Gold at US$5,600 you must love it at US$4,100.
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Ian Reynolds: Trader & Investor | Former Bank Foreign Exchange Market Maker | Early investor in Bitcoin & Tech Founder. Helping investors understand the radical changes coming in macroeconomics and geopolitics.
Suberia Capital: Special situations investing for high net worth individuals.
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