As Kevin Warsh prepares to take the helm at the Federal Reserve on Friday, Wall Street veterans are dusting off an old mantra: âThe market always tests new Fed chairs.â According to Dario Perkins, a global macro strategist at TS Lombard, the Newsletters for Every Investor Get…
ily, sector-specific newsletters packed with expert insights, fresh ideas, and new opportunities. Subscribe to Newsletters To ensure this doesnât happen in the future, please enable Javascript and cookies in your browser
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. Entering text into the input field will update the search result below Entering text into the input field will update the search result below Quick Insights New Fed chairs typically encounter significant stock market drawdowns, averaging around 5% in the first month and up to 13% by month three.
Bond markets usually see rising Treasury yields in the first six months of a new chair’s term, with few exceptions. Perkins argues that early market turbulence is usually driven by the new chair’s desire to establish hawkish policy credentials rather than markets testing the chair