Investors on Wall Street were trying to figure out what the nomination of Kevin Warsh, who served on the bank's board from 2006 to 2011, would mean for the outlook for the policy rate. Concern was the first reaction, due to the uncertainty.
The broad-based S&P 500 index and the Dow Jones industrial average both lost 0.4 percent, while the tech-heavy Nasdaq composite index fell 0.9 percent.
At the same time, metal prices plummeted. The price of gold, which reached a record high in January, has now fallen about 9 percent, to $4,885 per ounce (31.1 grams).
Over the past week, the S&P 500 rose 0.3 percent. The Dow Jones and Nasdaq, on the other hand, fell 0.4 and 0.2 percent, respectively.
