What a Kevin Warsh-Led Fed Means for Big Banks Like JPMorgan Chase and Bank of America
Written by Bram Berkowitz for The Motley Fool -> Monetary policy affects different banking businesses in different ways. The Federal Reserve also has significant authority in regulating banks. Kevin Warsh's approach to both aspects is very different from that of former Fed Cha
Monetary policy affects different banking businesses in different ways.
The Federal Reserve also has significant authority in regulating banks.
Kevin Warsh's approach to both aspects is very different from that of former Fed Chairman Jerome Powell.
Kevin Warsh is now chairman of the Federal Reserve's Board of Governors. If past comments from Warsh are any indication, then big changes could be coming to the Fed and the banking industry.
Warsh has spoken publicly about how he thinks the Fed has played too large a role in financial markets, whether through its transparency about future interest rate policy or the size of the Fed's balance sheet.
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It's also worth noting that the Fed regulates bank holding companies and has significant control over bank regulation, particularly for large banks. Here's what a Warsh-led Fed means for big banks like JPMorgan Chase (NYSE: JPM) and Bank of America .
It's hard to know exactly what approach Warsh will take to interest rates as the new board chair.
