economy
Warsh experiences worst 'Fed day' S&P 500 performance for a new chair since 1994
The S&P 500 tumbled more than 1% in Wednesday's session, with losses steepening during Warsh's inaugural press conference as chair.
TL;DR
- The S&P 500 fell 1.2% on the first "Fed day" under new Chairman Kevin Warsh, the worst performance for a new chair since 1994.
- Investors perceived Warsh's focus on price stability as a sign that interest rate cuts might not be as probable as previously expected.
- Traders are now increasingly anticipating a potential rate hike, with Fed funds futures suggesting an October possibility.
- Warsh's first meeting also introduced a streamlined Fed statement and new operational task forces, indicating a "regime change" at the central bank.