Warsh's Policy Approach Gets Thumbs Up from Tengler

Nancy Tengler, Chief Investment Officer of Laffer Tengler Investments, is not worried about Kevin Warsh's policy approach as Federal Reserve Chairman. With over 40 years in the business, she has seen new Fed Chairmen face market scrutiny.

Tengler points out that Chairman Powell's first year saw significant market volatility, but believes this narrative surrounding Warsh is incorrect. She notes that Warsh clearly stated his plan to tighten financial conditions through balance sheet reduction during a recent Fed meeting.

Tengler also thinks the concerns about rising Treasury yields are misplaced. While the 30-year yield has increased, the 2s/10s spread has actually come in recently, which she sees as a deliberate move by Warsh to let the market steepen the curve.