Kevin Warsh, The Fed's New Era, And The Trimmed Mean Debate

Kevin Warsh's appointment as Fed Chair points to a potential hawkish shift in monetary policy and inflation measurement. Markets have moved from expecting rate cuts to pricing in hikes, with the Fed now expected to hold policy rates at 3.5%–3.75%. The change in expected policy path is market-wide and likely to affect rates, equities, and FX.

Analysis

Kevin Warsh's appointment as Fed Chair points to a potential hawkish shift in monetary policy and inflation measurement. Markets have moved from expecting rate cuts to pricing in hikes, with the Fed now expected to hold policy rates at 3.5%–3.75%. The change in expected policy path is market-wide and likely to affect rates, equities, and FX.