Morgan Stanley believes that Wosh will bring long-term systemic transformation risks, further amplifying volatility in the U.S. bond market.

Golden Finance reported that on April 28, a Morgan Stanley analyst said that Kevin Wosh’s nomination to serve as the chair of the U.S. Federal Reserve is likely to be confirmed, which could bring risks of long-term institutional changes and potentially increase volatility in the U.S. Treasury market. A team led by Matthew Hornbach noted that under Wosh’s leadership, the Fed may adopt new inflation indicators, reduce forward guidance, and work to shrink the size of its balance sheet; these changes “may increase volatility between each FOMC meeting.” In congressional testimony last week, Wosh himself hinted that the central bank’s “policy operations approach will undergo a structural change.”