Kevin Warsh Made His First Big Move as Fed Chair, and the Bond Market Has Taken Action -- but Most Investors Missed It
The new Fed chair can impact interest rates without lifting a finger.
Overview
This has been a history-packed year for Wall Street, with the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) hitting new highs and the largest-ever initial public offering taking shape. But the biggest eyebrow-raiser might just be the shift in power at America's foremost financial institution, the Federal Reserve.
On May 22, President Donald Trump's handpicked successor to Jerome Powell, Kevin Warsh, was sworn in as the new Fed chair. During his swearing-in ceremony, Warsh promised to lead a "reform-oriented" central bank -- and he's wasted little time implementing his very first significant change. Interestingly, the bond market has taken notice, but this change has mostly gone over investors' heads.
Kevin Warsh vowed to lead a reform-oriented Fed at his swearing-in ceremony. Image source: Official White House Photo by Daniel Torok.
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Source
Originally published at www.fool.com.