Kevin Warsh becoming a key catalyst behind the recent market sell-off
The move started as odds surged that he could become
Next Fed Chair, reviving fears linked to his policy stance.
Former Fed(2006-2011),Warsh has long criticized post-2008 monetary policy, arguing QE inflated asset prices, worsened inequality,and mainly benefited financial markets calling it “reverse Robin Hood” policy.He also views post-2020 inflation as a policy mistake
While he supports rate cuts, he favors balance sheet reduction, not renewed QE
Markets pricing a dangerous mix: lower rates without expanding liquidity
