Home Market Outlook Today's Market Summary The imminent transition from Powell to Warsh as Fed Chair marks a fundamental regime shift, not just a continuation of current policy. Warsh advocates aggressive balance sheet reduction and less reliance on forward guidance, signaling a stricter, rules-based anti-inflation strategy. Markets have largely priced in a hawkish Fed pause, but equities remain complacent, ignoring the risk of a liquidity shock under Warsh. The risk/reward profile is asymmetric: a hawkish surprise could trigger a sharp equity selloff, especially in long-duration and leveraged assets. Getty Images Why This FOMC Meeting Matters The FOMC meeting in late April will likely be uneventful on interest rates; however, it will by no means be irrelevant to the financial markets. The Federal Reserve Board is generally expected Analyst’s Disclosure: I/we have a beneficial long position in the shares of SPX, NDX either through stock ownership, options, or other derivatives.…