Kevin Warsh said no one wants the Federal Reserve's balance sheet to shrink.

Spot gold jumped about $20 to test $4,040/oz, up 0.83% intraday. New York gold futures rose above $4,050/oz, up 0.28% on the day. The dollar index DXY briefly slipped roughly 0.10 point to 101.45.

Two weeks after the new Fed chair took office, HASSETT, director of the White House National Economic Council, said the White House would oppose rate hikes. The Fed's preferred inflation gauge is above 4% and the chair has said returning it to 2% is non‑negotiable, but HASSETT told Fox Business that using rate increases to curb price pressures would be a mistake. He called the expansion supply‑driven, said the chair has expressed similar views during his campaign, and described hikes in this context as "a macroeconomic mistake." TRUMP has repeatedly criticized former chair Powell for keeping rates higher than he wanted; although the president has said he would give the new chair latitude, HASSETT's remarks signal continued White House interest in Fed policy.