3 key questions for investors about Kevin Warsh, Trump's pick to lead the Fed
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Investors are greeting President Trump's nomination of Kevin Warsh to lead the Federal Reserve with cautious approval, while weighing key questions about how the former Fed governor's crisis-era credentials and appetite for change could reshape U.S. monetary policy. Edited by Aimee Picchi In:
Investors are greeting President Trump's nomination of Kevin Warsh to lead the Federal Reserve with cautious approval, while weighing key questions about how the former Fed governor's crisis-era credentials and appetite for change could reshape U.S. monetary policy.
Warsh's hawkish reputation as a former Federal Reserve governor from 2006 to 2011, coupled with his role during the 2008 financial crisis, has helped calm fears of a disruptive overhaul in how the central bank is run.
Even so, investors are expecting potential shifts at the Fed under Warsh's leadership, following his previous comments about a need for change and a recent openness to lowering rates. While U.S. markets were little changed on Friday, investors moved away from safe-haven assets such as gold and silver, a sign of reassurance in Mr. Trump's choice to replace Fed Chair Jerome Powell.
"That crisis-era experience also suggests to us that Warsh is the person you want running the Federal Reserve if there is a new disruption to the financial system," said Jaret Seiberg of TD Cowen in a research note.
Here are three questions for investors with Warsh on tap to lead the Fed.
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