Opinion: If the U.S. Treasury revalues gold, the Federal Reserve will be thrown into chaos

ChainCatcher news, according to Jinshi reports, Wrightson ICAP stated that under the debt ceiling constraints, revaluing the U.S. gold reserves may seem tempting, but it will have profound effects on the financial system, increase liquidity, and extend the Fed's balance sheet reduction timeline. The core idea is that the government should revalue its gold reserves from $42.22 per ounce (the legacy price of the Bretton Woods system) to market prices.

Wrightson ICAP economist Lou Crandall indicated that the likelihood of reassessing the Treasury's gold holdings is low, the benefits would be minimal, and the public relations response could be quite chaotic.