Stocks Close Lower, Precious Metals Sink, Reaction to Warsh, More

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Unknown 0:00
The UK stands apart as a place to do business, not because of one advantage, but many working together. Over £10 trillion in capital, four of the world's top universities, a 10-year industrial strategy in action, its stability with dynamism, global reach with local depth. It all adds up to greater growth. Find out more at business.gov.uk slash growth.
Amy Morris 0:28
News when you want it with Bloomberg News Now. I'm Amy Morris. There's your closing bell for this Friday on Wall Street where the dollar surged, bonds were mixed and gold fell along with stocks. And we bring you those closing numbers each day here at Bloomberg. The S&P 500 losing 30 points. NASDAQ down 223 points. The Dow is down 178 points. The 10-year Treasury yield at 4.24%. The two-year yield at 3.53%. Spot gold right now down about 10%, trading at less than $5,000 an ounce. This was its biggest daily decline since the early 1980s. Silver plunged more than 36 percent earlier in the trading day. Silver right now down about 28 percent. The sell-off sweeping through the broader metals markets. All of this triggered by the dollar rebounding after President Trump nominated Kevin Warsh to be the next Federal Reserve chairman.
Amy Morris 1:27
Trump says Warsh has not committed to cutting interest rates, but he knows he wants to.
Unknown 1:31
No, but we talk about it and I've been following them and I don't want to ask them that question. I think it's inappropriate, probably.
Amy Morris 1:37
Fed Governor Stephen Myron says he expects Warsh will prove effective.
Neil Dutta 1:41
Chairman-designate Warsh has a long and illustrious career in history as a very insightful thinker on monetary policy. I think he's a fantastic pick.
Amy Morris 1:50
Fed Governor Myron was on Bloomberg TV. Neil Dutta is head of economic research at Renaissance Macro. He has harsh words for the president's nominee.
Renaissance Macro's Neil Dutta 1:58
Criticism I have of Kevin Warsh is lack of judgment, OK, because his performance during the financial crisis was not a particularly good one. And I think you could say arguably that it is disqualifying.
Amy Morris 2:11
Renaissance Macro's Neil Dutta says Warsh was too concerned about inflation as unemployment was rising rapidly after the 2008 crisis. Atlanta Fed President Rafael Bostic tells CNBC he doesn't really have a lot of experience with Warsh.
Rafael Bostic 2:24
We'll just have to see how Mr. Warsh is in the role. It's very interesting.

What are the closing numbers for stocks and precious metals?

Rafael Bostic 2:30
So when I was becoming, getting ready to become Atlanta Fed President, I had one set of thoughts. And then when I became the president, You get to see things in a different way and different perspectives. So I actually expect that will be exactly the same, maybe even magnified as a chair of the Federal Reserve. And we'll just have to see how things play out.
Amy Morris 2:49
This week was Bostick's last as a policymaker. He retires at the end of February. St. Louis Fed President Alberto Masalam says he is looking forward to seeing what Warsh brings to the job.
Alberto Musalem 2:59
I've known Kevin Warsh for about 16 years now. He's exceptionally qualified for the position.
Amy Morris 3:07
Musalem spoke at the University of Arkansas, and Arkansas Republican Congressman French Hill, chair of the House Ways and Means Committee, welcomes the nomination of Warsh.
French Hill 3:16
Kevin's years of experience in financial markets as a former governor of the Fed, I think keenly have him knowledgeable of the responsibilities and the leadership needed to guide America's central bank. Then we need it confirmed and let them have some overlap and be able to work together.
Amy Morris 3:33
Congressman French Hill was a guest on Bloomberg's Balance of Power. Republican Senator Tom Tillis says he'll continue to oppose the confirmation of any Federal Reserve nominee until the Justice Department's inquiry into the current Fed chair, Jay Powell, is resolved. He tells Bloomberg Surveillance Kevin Warsh is qualified, but that won't change his stance.
Unknown 3:52
They're pursuing, on the basis of criminal intent, testimony in a banking committee hearing. that clearly had no criminal intent.
Amy Morris 4:03
Tillis says protecting the independence of the Federal Reserve from political interference is non-negotiable. President Trump says if Tillis doesn't lift that block, he'll just wait him out.

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