President Donald Trump's Nomination of Kevin Warsh to Become Fed Chair May Come With Unintended Consequences for Wall Street

President Donald Trump's Nomination of Kevin Warsh to Become Fed Chair May Come With Unintended Consequences for Wall Street

Key PointsJerome Powell's term as Fed chair ends on May 15, which is what led President Trump to nominate Kevin Warsh to replace him.Warsh's critiques of the Federal Reserve's $6.6 trillion balance sheet may unsettle a historically pricey stock market.Furthermore, Warsh would be taking over a historically divided Federal Open Market Committee (FOMC).10 stocks we like better than S&P 500 Index › The stock market has been practically unstoppable o…

Jerome Powell knows the Fed's balance sheet got too big—Kevin Warsh has a plan, he just has to sell it without freaking out markets or the Treasury

Jerome Powell has been a friendly neighbourhood Fed Chairman to the White House, despite the criticism and insults President Trump has levelled against him. That’s because while Powell may not have yielded to pressure from the White House to lower the base rate, the Fed, under his direction, has dutifully continued to buy Treasury debt. The central bank, as a lender to the federal government, gives Powell visibility over the nation’s fiscal traj…