Fed Chair Kevin Warsh Is in a No-Win Scenario -- and So Is Wall Street
Written by Sean Williams for The Motley Fool -> Jerome Powell's successor, Kevin Warsh, officially took the reins as Fed chair on May 22. A historic energy supply shock is wreaking havoc on prices, sending the U.S. inflation rate to a three-year high. Regardless of whether War
Jerome Powell's successor, Kevin Warsh, officially took the reins as Fed chair on May 22.
A historic energy supply shock is wreaking havoc on prices, sending the U.S. inflation rate to a three-year high.
Regardless of whether Warsh and the Federal Open Market Committee (FOMC) raise or lower interest rates, a historically expensive stock market ends up the loser.
It's been an eventful past month for Wall Street and investors. Earlier this month, the iconic Dow Jones Industrial Average (DJINDICES: ^DJI) , widely followed S&P 500 (SNPINDEX: ^GSPC) , and growth-stock-inspired Nasdaq Composite (NASDAQINDEX: ^IXIC) rocketed to all-time highs.
Meanwhile, Jerome Powell's tenure as Fed chair came to a close on May 15 . President Donald Trump's nominee, Kevin Warsh, officially became only the 17th head of the central bank on May 22.
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While change is a given on Wall Street, not all shifts are necessarily good news for the stock market or investors. Warsh's ascent to Fed Chair comes at a particularly challenging time for the Federal Open Market Committee (FOMC) -- the 12-person body responsible for setting the nation's monetary policy -- and Wall Street. It appears that no matter what action Warsh oversees next, neither he nor Wall Street can come out as winners.
Kevin Warsh became Fed chair at an incredibly challenging time. Image source: Official White House Photo by Daniel Torok.
