Fed Chair Kevin Warsh Testified to Congress That the Fed Has "Only a Target, and It's 2%," Rejecting Any Soft Inflation Goal. What Does That Mean for Rate-Sensitive Stocks?

New Fed Chair Kevin Warsh is ending the 'Fed put' by committing strictly to a 2% inflation target with no guidance or soft targets. This removes the safety net investors have relied on since 2000, leading to rising rates and increased market uncertainty. Rate-sensitive stocks face higher volatility, with negative impacts on leveraged companies like REITs but potential benefits for banks through higher net interest income.