Kevin Warsh: A New Face at the Fed?
Kevin Warsh might be the next big name at the Federal Reserve. With Kevin Hassett staying put, Warsh is now in the spotlight. People are betting he has a 60% chance of getting the job.
A Non-Typical Fed Pick
Warsh isn't your typical Fed pick. He's not a fan of quantitative easing (QE). He thinks it messes with market prices and encourages too much risk-taking. If he's in charge, the Fed might:
- Shrink its balance sheet
- Set clearer rules for emergency help
This could make markets more volatile at first, but it might be better in the long run.
Impact on Investors
Investors who've enjoyed the benefits of QE might feel the pinch. Warsh's Fed could mean:
- Tighter financial conditions
- Less intervention
This shift could make active investing more rewarding than passive strategies.
Market Trends
Small and Mid-Cap Stocks
Small and mid-cap stocks are having a moment. They're the new favorites, while large and mega-caps are losing their shine. But be careful—these smaller stocks might be overbought. It's wise to wait for a market correction before making big moves.
Natural Gas Prices
Natural gas prices are also making headlines. A cold snap in the Midwest and Northeast sent prices soaring. The big question is how long this surge will last. It all depends on the weather forecasts for February.
