Fed, Trump and Kevin Warsh
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Wall Street's foundational financial institution is rife with red flags, and the stock market could pay the price.
Trump bemoaned last week his issue with naming the next Federal Reserve chair: The problem, he said, is they change once they have the job. Wall Street is counting on it.
WSJ Invest Live event features Citadel CEO Ken Griffin, Trian CEO Nelson Peltz and more.
Though the Fed is often viewed as a stabilizing force for Wall Street, it may represent the stock market's undoing in the new year.
By Sinéad Carew and Pranav Kashyap Jan 30 (Reuters) - Wall Street's main indexes closed lower on Friday as investors viewed President Donald Trump's nomination of former Federal Reserve Governor Kevin Warsh as a hawkish choice to succeed Federal Reserve Chair Jerome Powell,
Warsh’s repeated focus on the issue could shape the Fed’s policy approach going forward, wrote Wells Fargo Chief Economist Tom Porcelli. Powell has been known for “insurance cuts” — lowering rates slightly to get ahead of brewing risks in economic data. But those might now become less common, Porcelli wrote.
Kevin Warsh, President Trump’s pick as the next chair of the Federal Reserve, has long expressed a desire to shrink what he calls the central bank’s “bloated” balance sheet. But doing so is not as easy as it might sound.