<div id="readability-page-1">Markets may be underestimating the risk that a Kevin Warsh-led Federal Reserve turns more hawkish early in his tenure, according to a note from TS Lombard’s Dario Perkins, who argued that new Fed chairs have historically tended to tighten policy quickly to establish credibility. Perkins said Wall Street’s long-standing belief that “the market alway...</div>

<p>Markets may be underestimating the risk of a hawkish shift from a Kevin Warsh-led Federal Reserve, as noted by TS Lombard’s Dario Perkins. He highlighted that new Fed chairs often tighten policy quickly to build credibility, suggesting that Wall Street's belief in a more dovish approach may be misplaced.</p>

Warsh could face early market "test" if Fed turns hawkish, TS Lombard says