Warsh Regime Change Vow Jolts S&P 500 Down to 7,553.68

On June 4, Fed Chair Kevin Warsh told the Senate Banking Committee that a 'regime change' in policy conduct is required, favoring rate tools over the $6.7 trillion balance sheet and scrapping rigid 2% guidance. The hawkish signals follow June 3 reports drawing parallels to Alan Greenspan's 1987 White House swearing-in, which preceded Black Monday. With the S&P 500 already at record valuations and consumer sentiment at 1952 lows, the comments triggered immediate selling that pushed the index to 7,553.68.