Deutsche Bank: Powell may challenge conventional practices at the confirmation hearing for the nomination of the Federal Reserve Chairman.

Matthew Luzzetti of Deutsche Bank wrote that Kevin Warsh may express willingness to evaluate or modify some longstanding practices of the Federal Reserve at next week's confirmation hearing. The Federal Reserve Chairman nominee has consistently advocated for reducing the Fed's balance sheet. Luzzetti wrote that this may not be achieved overnight, but Warsh may discuss a plan to initiate a comprehensive review process. Warsh has also been critical of the forward guidance used by the Fed; he may propose adjustments to the Fed's dot plot forecasts, although Luzzetti believes these forecasts will not be completely eliminated.