Fidelity investors warn a first press conference by a new Fed chair could reset market expectations for inflation and interest rates, potentially stirring volatility in bonds.
Kevin Warsh’s debut as Fed chair could unsettle bond markets, with Fidelity investors warning that his first appearance after Wednesday’s policy decision may prompt traders to rethink the path for inflation and interest rates. The concern is that a new chair’s initial press conference can reshape expectations around monetary policy, a key driver of Treasury yields and broader fixed-income pricing, at a time when markets are already pricing in a particular rates outlook.