Institution: Under the leadership of Powell, different Federal Reserve systems may lead to higher volatility.

Arif Husain of PIMCO stated that investors may need to prepare for a different Federal Reserve system under the leadership of new Chairman Kevin Warsh, characterized by greater uncertainty, higher volatility, and assets prices being more sensitive to economic data and policy dynamics. The desire to shrink the Fed's balance sheet may be at odds with the preference to keep interest rates as low as possible. The global head of fixed income stated in a report: "The combined effect of shrinking the balance sheet, reducing forward guidance, and potential tension between monetary and fiscal targets may lead to higher volatility in the medium term and beyond." Husain stated that volatility may first appear in the interest rate market, spread to the credit market, and eventually affect the stock market.