iShares Silver Trust (NYSE:SLV) shares are sinking on Friday. President Donald Trump's nominated Kevin Warsh as the next Federal Reserve chair.
Warsh Nomination Shifts Market Expectations
Trump’s move seemed to ease recent worries about the Fed's independence. Warsh will step in to succeed Jerome Powell when his term ends in May 2026.
Warsh's deep background in monetary policy and financial markets, along with his skepticism toward long periods of ultra‑easy policy has led investors to expect a more cautious approach to rate cuts. His nomination has calmed earlier fears that a Trump‑appointed chair might push for rapid reductions in interest rates.
Krishna Guha, vice chairman at Evercore ISI said "The Warsh pick should help stabilize the dollar and reduce, though not eliminate, the risk of extended dollar weakness by challenging debasement trades — which is also why gold and silver are sharply lower," reported CNBC.
The dollar strengthened about 0.4% as traders adjusted to the possibility of a less accommodating Fed under Warsh, a move that typically weighs on commodities priced in dollars.
Silver Pulls Back After Massive Multi‑Year Rally
Silver's drop comes after an extraordinary run. The metal surged 150% in 2025 and climbed another 45% so far in 2026, driven by geopolitical tensions, a weaker dollar and worries about the Fed's independence.
SLV Price Action: iShares Silver Trust shares were down 19.39% at $85.26 at the time of publication on Friday, according to Benzinga Pro.
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