Kevin Warsh Just Vowed to Bring a "Regime Change" to the Fed. It Could Rattle Wall Street.
Warsh's re-evaluation of Fed procedures could add volatility to the bond market and a headwind to growth and tech stocks.
Overview
Federal Reserve Chair Kevin Warsh used his first appearance before Congress this month to draw a hard line on inflation. Testifying before the House Financial Services Committee and the Senate Banking Committee, Warsh told lawmakers: "The 63 months of inflation above target has been an unfair burden and has been a tax on the American people and businesses. We plan on getting rid of that tax. That means we need a regime change in policy."
Kevin Warsh. Image source: Official White House Photo by Daniel Torok.
In June, the Consumer Price Index (CPI) rose 3.5% year over year. That's down from May's 4.2% rate but still well above the Fed's 2% target. In Warsh's first meeting as chair, the Fed adopted a wait-and-see approach, holding its benchmark rate steady at 3.5%-3.75%.
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Originally published at www.fool.com.