Morgan Stanley Sees Greater Treasury Volatility Under Warsh Fed

A Federal Reserve led by Kevin Warsh would likely boost volatility in the US Treasury markets due to the central bank’s reduced public communications, according to Morgan Stanley.

Warsh, nominated by President Donald Trump to succeed Jerome Powell in May as chair, served as a governor at the Fed from 2006 to 2011. A Morgan Stanley review of Federal Open Market Committee transcripts from that time reveals that Warsh wanted investors to develop their own opinions on economic growth, inflation and monetary policy.