New Fed chair Kevin Warsh has a $6.7 trillion conundrum
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"Confirmation hearings are political theater rather than substance, and he [was] plenty smart enough to avoid saying anything tangible."
The Senate confirmed Kevin Warsh as Federal Reserve Chair in a 54–45 vote. Warsh will replace Jerome Powell, whose term as Chair ends on May
With inflation spiking and Treasury yields surging, Warsh is likely to confront a Federal Open Market Committee in no mood to ease.
1don MSNOpinion
Kevin Warsh and the return of monetarism
The new Fed chair believes inflation is linked to money. That will serve him well.
The bearish case on rate-sensitive regulated utilities at current levels is building, and NextEra Energy (NYSE:NEE) at $95.68 is the cleanest example of what Kevin Warsh’s commitment to quantitative tightening will do to the group.