world-economy

Warsh's Fed Leadership Expected to Trigger Bond Market Swings

Fixed-income investors are bracing for heightened volatility in bond markets following Federal Reserve Chairman Kevin Warsh's first public remarks on monetary policy. Fidelity Investments portfolio managers anticipate Warsh's comments after Wednesday's Fed decision will serve as a significant trigger for market movement. Investors will digest the policy statement and economic projections closely. The chairman's positioning on inflation is expected to be parsed closely by bond managers seeking clarity on the central bank's direction. Bond traders will scrutinize Warsh's language for any shifts in the Fed's inflation assessment and forward guidance.