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Sell In May And Warsh Away
2026-05-12 · via All Articles on Seeking Alpha

Summary

  • Kevin Warsh's appointment as Federal Reserve chairman signals a shift toward tighter monetary policy and constrained government intervention.
  • Warsh's background and Hoover Institution ties suggest a preference for shrinking the Fed balance sheet and limiting QE, raising systemic risk.
  • Ramp-down of reserve management purchases (RMPs) and potential quantitative tightening could stress banks, credit markets, and asset prices.
  • Investors should exercise heightened caution, as a crisis-driven correction may precede any return to QE and renewed asset appreciation.
  • This idea was discussed in more depth with members of my private investing community, Margin of Safety Investing. Learn More »
Wooden cubes with FED and up-down arrows over 100 usd. Fed rate hike concept to curb inflation

yalcinsonat1/iStock via Getty Images

In the coming weeks, a new Federal Reserve Chairman will be installed in Kevin Warsh. This is not a business-as-usual appointment. It is a continuation of Trump Administration policies to shrink government.

The Warsh appointment occurs

28.36K Followers

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