Kevin Warsh Cameo
Last week featured the first FOMC – (Federal Open Market Committee) meeting with Kevin Warsh at the helm…. his first as Chair/President…
And while a massive amount of index adjustments, seasonal movements, and end of the quarter/mid year.. there were also Capital Market participant jitters as well….
Interestingly, the FOMC will have major changes if Walsh has his way …
Short Form aka Less Talk – Lowering of Fed Balance Sheet aka no more stimulus
With a long form meeting notes being most common over the last several FOMC chairs/decades … to be exact, about 400+ words….
Warsh’s first dance was a whopping 140 words – Refreshing
Warsh has a goal of lowering the Federal Reserves balance sheet – We need to all remember this, as this is a complete reversal from the last many FOMC Chiefs!
Initial Thoughts
So his nomination was based on being a fan or lowering short term rates…. his cameo was not verbally that direction..
With our main researchers (Hedgeye) predicting lower CPI/Consumer Price Index/Blunt inflation peaking last month, and headed down, Warsh will be able to dance with his true goals… BUT
Warsh is a major pundit of lowering the Feds balance sheet aka no more stimulus/adding funds into the system… After years of living on this stimulus, a change that will be difficult to convince, tough to complete!
Have a Great “Warsh Cameo Analysis” Day!
John A. Kvale CFA, CFP
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Founder of J.K. Financial, Inc.
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Management firm.
