Fed, Kevin Warsh and Stock Market
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At stake is not simply whether the Fed cuts rates, but how new leadership may define monetary policy in coming years.
For most of 2026, Wall Street treated Federal Reserve rate cuts as inevitable. The only debate was whether investors would get two cuts or three. Bond traders, stock investors, and mortgage borrowers all built their expectations around the idea that inflation was cooling enough for the Fed to ride to the rescue.
Tomorrow, May 15, will mark the final day of Jerome Powell's tenure as Fed chair and the expected beginning of Kevin Warsh's first term as head of the Fed. Warsh's five years on the Board of Governors of the Federal Reserve (Feb.
Powell recently announced he plans to remain on the Federal Reserve Board of Governors even after his term as board chair ends.
Juan Pablo Villamarin, senior investment advisor at Intercontinental Wealth Advisors, notes that the Fed has two primary monetary policy tools: "The main tool, and the most widely
Stocks are set to close out April with major gains even as a war in the Middle East is ongoing, and fears around AI disruption evolve.