World 8 hours ago 1 min
Warsh's Worst Fed Day: S&P 500 Selloff Since 1994
Kevin Warsh's first Fed day as chair triggered the S&P 500's worst debut reaction for a new Federal Reserve chair since 1994.
Why it mattersCentral banks operate through expectation management. When a new Fed chair's first communication muddies the path for rates and policy, investors reprice everything—borrowing costs, equity valuations, capital flows, and the housing market. Even markets that track political outcomes, such as prediction markets, can move on the same signals. A 1.2% drop on day one signals the market left the press conference less certain, not more, about Warsh's reaction function and the Fed's forward guidance.