Strategist: Wash's appointment hearing will be seen as a reassuring signal.

Laura Cooper, strategist at Nuveen, a California investment company, pointed out in a report that the confirmation hearing of Kevin Warsh, the nominee for Federal Reserve Chairman, has been interpreted as a reassuring signal, especially in terms of Federal Reserve independence and policy continuity. Warsh avoided committing to a specific interest rate path and emphasized caution in shrinking the balance sheet. He tends to use averages as a prominent policy guideline. This measurement standard excludes tail risks to assess potential price trends, and during the current period of energy shocks, it may "provide clearer signals." However, this approach may also underestimate inflation levels.