Does a new Fed Chair always bring market turmoil? in World Economy News 28/04/2026 Kevin Warsh faced senators on April 21 for his Federal Reserve chair nomination hearing, reviving a question that has shadowed every leadership transition at the U.S. central bank – whether a new Fed chief reliably triggers financial market stress. Half a century of data suggests not always. According to Deutsche Bank, the record on new Fed Chairs and market disruption is decidedly mixed. “There are numerous examples where a Fed Chair change was not associated with significant market downside,” the analysts said. The clearest case of an early crisis under a new Fed Chair came under Alan Greenspan. The Black Monday crash of 1987 struck just two months into his tenure. Arthur Burns, who took office in February 1970, inherited a recession that had already begun before he was sworn in. Paul Volcker’s aggressive tightening did trigger a recession, but Deutsche Bank noted that tackling inflation was the explicit reason for his appointment, making it less a case of markets testing a new chair than a deliberate policy choice. More recent transitions show longer lags before major stress events. The first tremors of the financial crisis did not emerge until 18 months into Ben Bernanke’s term, and the Lehman Brothers default came 2.5 years in. Under Jerome Powell, the COVID-19 shock did not arrive until two years into his tenure, according to Deutsche Bank, which tracked drawdowns relative to 52-week highs across Fed Chair transitions dating back to 1925. Warsh faces a distinct set of challenges should he be confirmed. Deutsche Bank flagged three pressure points: his prior public support for rate cuts, his stated views on Fed independence, and his preference for a smaller Fed balance sheet, positions that may complicate his path given current market expectations that the U.S. does not need rate cuts. The confirmation process itself faces an additional hurdle. Republican Senator Thom Tillis has said he will block all Fed nominations while the Department of Justice’s investigation of Chair Powell remains active. That would prevent Warsh’s nomination from advancing through the Senate Banking Committee to a full Senate vote. Powell, for his part, said at the March FOMC meeting that he would remain as Chair Pro Tempore until a successor is confirmed. He added that he intends to stay on the Board of Governors until the DoJ investigation concludes, stating, “I have no intention of leaving the board until the investigation is well and truly over, with transparency and finality.” Deutsche Bank noted the political calculus at play. “It’s possible this delay suits all parties for now while the uncertainties of the war rumble on,” the broker added. Source: Investing.com 2026-04-28 hellenicshippingnews... window.___gcfg = {lang: 'en-US'}; (function(w, d, s) { function go(){ var js, fjs = d.getElementsByTagName(s)[0], load = function(url, id) { if (d.getElementById(id)) {return;} js = d.createElement(s); js.src = url; js.id = id; fjs.parentNode.insertBefore(js, fjs); }; load('//connect.facebook.net/en/all.js#xfbml=1', 'fbjssdk'); load('https://apis.google.com/js/plusone.js', 'gplus1js'); load('//platform.twitter.com/widgets.js', 'tweetjs'); } if (w.addEventListener) { w.addEventListener("load", go, false); } else if (w.attachEvent) { w.attachEvent("onload",go); } }(window, document, 'script')); tweet Share