Morgan Stanley: Fed Led by Powell Could Intensify US Treasury Market Volatility
BlockBeats News, February 3rd, Morgan Stanley stated that the Fed led by Kevin Warsh may exacerbate volatility in the U.S. Treasury market due to a reduction in its policy transparency.
Warsh, nominated by Trump to succeed Powell as chairman in May, served as a Fed governor from 2006 to 2011. A review by Morgan Stanley of minutes from a past Federal Open Market Committee (FOMC) meeting showed that Warsh wanted investors to form their own views on economic growth, inflation, and monetary policy.
At Morgan Stanley, Hornbach and Tauber believe that this former governor prefers a "smaller balance sheet size," which could push up long-term Treasury yields relative to short-term yields, a phenomenon known as a steeper yield curve.
However, the bank believes that the Fed under Warsh's leadership may change its communication style, which could increase investor uncertainty, a key point. This includes a reduction in Fed officials' interactions with the media, especially before FOMC meetings, and possibly the elimination of the "dot plot" forecast or economic projections summary (FXStreet).
You may also like

Kyle Samani's Exit Scam, Is There More to the Story?

February 10th Market Key Intelligence, How Much Did You Miss?

Tokenomics New Paradigm? When Backpack Starts Enabling VCs to "Deferred Gratification"

BankrCoin Achieves New Milestones as YZi Labs and ETH Investors Make Significant Moves
Key Takeaways BankrCoin (BNKR) hit a new all-time high with significant market activity. YZi Labs executed a major…

Bitcoin Tests $75K Amid Market Predictions
Key Takeaways Bitcoin shows a 47% chance to test the $75,000 mark this February, contrasting with a potential…

MrBeast Acquires Step to Enhance Financial Offerings for Youth
Key Takeaways YouTube star MrBeast has acquired the financial services platform Step through Beast Industries. The acquisition aims…

Polymarket Predicts Bitcoin Uptrend as MrBeast Ventures into Fintech
Key Takeaways Bitcoin’s Potential Surge: Polymarket denotes a fluctuating probability of Bitcoin achieving $75,000 in February, reflecting volatile…

MrBeast Enters Financial Services with Step Acquisition
Key Takeaways Binance announced an Alpha Airdrop event, highlighting the growing trend of gamified airdrops. Bitcoin prediction markets…

Analysts Predict Bitcoin May Fall to $55K as Support Levels Threaten
Key Takeaways Analysts suggest a potential drop of Bitcoin to $55K if current support levels are breached. Galaxy…

Analysts Predict Bitcoin May Drop to $55K Amid Support Challenges
Key Takeaways Experts caution that Bitcoin could fall to $55,000 if current support levels are breached. The market…

Bitcoin May Decline to $55K: Analysts Warn
Key Takeaways Analysts project Bitcoin could drop to $55,000 if key support levels fail. Technical analysts forecast that…

YZI Labs Transfers Massive ID Tokens to Binance as BNKR Hits New High
Key Takeaways BNKR, a digital currency, has achieved its highest-priced milestone of $0.295 CAD as of January 26,…

MrBeast Acquires Step, Expanding Influence in Teen Finance Market
Key Takeaways MrBeast has acquired the financial services app Step, which caters specifically to Gen Z users. Step…

Analysts Predict Bitcoin’s Critical Support Level May Trigger Decline
Key Takeaways Experts indicate a crucial moment for Bitcoin, with potential price drop to $55,000 if support fails.…

Michael Saylor Faces Bitcoin Valuation Challenges: Impact on the Crypto Market
Key Takeaways Michael Saylor’s Bitcoin investment is currently valued at $55 billion, but recent market trends have seen…

MrBeast Acquires Step FinTech App in Strategic Move
Key Takeaways MrBeast’s company, Beast Industries, has announced the acquisition of Step, a fintech app focused on Gen…

Bitcoin’s Potential Surge Sparks Debate Among Investors
Key Takeaways The probability that Bitcoin will reach $75,000 in February fluctuates as predicted by Polymarket. Bitcoin recently…

Analysts Predict Bitcoin’s Potential Plunge to $55K
Key Takeaways Analysts warn of a possible drop to $55K if Bitcoin’s current support breaks. 10X Research and…
Kyle Samani's Exit Scam, Is There More to the Story?
February 10th Market Key Intelligence, How Much Did You Miss?
Tokenomics New Paradigm? When Backpack Starts Enabling VCs to "Deferred Gratification"
BankrCoin Achieves New Milestones as YZi Labs and ETH Investors Make Significant Moves
Key Takeaways BankrCoin (BNKR) hit a new all-time high with significant market activity. YZi Labs executed a major…
Bitcoin Tests $75K Amid Market Predictions
Key Takeaways Bitcoin shows a 47% chance to test the $75,000 mark this February, contrasting with a potential…
MrBeast Acquires Step to Enhance Financial Offerings for Youth
Key Takeaways YouTube star MrBeast has acquired the financial services platform Step through Beast Industries. The acquisition aims…