Natixis: Kevin Warsh’s First FOMC Meeting as Chair Faces High Scrutiny

Investors were not surprised by the Federal Reserve’s decision to keep the federal funds rate target range at 3.50%–3.75%, but Natixis said the meeting still ranked among the most important of the year. According to Jin10, Natixis analyst Mabrouk Chetouane wrote in a report that the policy meeting marked the first attended by Kevin Warsh as FOMC chair and would be a demanding test. Chetouane, the firm’s head of global market strategy, said the new Fed chair needed to assess economic conditions and could also push for changes, particularly in the central bank’s communication strategy. He added that Warsh’s first actions after taking office and his early remarks were expected to be closely watched, because transition periods at the world’s most influential monetary institution typically put pressure on capital markets.