Warsh's Fed Confirmation Hearing Starts Tomorrow. 3 Huge Things Investors Should Listen For

Kevin Warsh’s confirmation hearing before the Senate Banking Committee is set for 10 a.m. ET and could materially move markets. The article flags three market-critical topics investors should watch: whether Warsh signals willingness to cut the federal funds rate (important amid CPI rising to 3.3% YoY in March), his commitment to Federal Reserve independence (loss of which could damage bonds), and plans for a faster, deeper shrinkage of the Fed’s balance sheet (which swelled to nearly $9 trillion and is now about $6.7 trillion). Comments on these issues would influence liquidity, inflation expectations and risk asset valuations—especially the S&P 500—making the hearing a key macro event for stocks and bonds.