Morgan Stanley manager expects markets to be disappointed by Warsh speech

Markets may be disappointed by Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole symposium, Morgan Stanley Investment Management fixed-income portfolio manager Kelley Gerrity said.

Gerrity discussed her expectations ahead of Warsh’s address with Bloomberg’s Scarlet Fu on Bloomberg Real Yield. The speech is scheduled for Friday.

The comments come as investors assess Warsh’s views on monetary policy and the Federal Reserve’s balance sheet. Warsh has advocated for a smaller balance sheet and established a task force to review its size and the maturity of its holdings.

Warsh has also discussed the possibility of a new Fed-Treasury accord without detailing how such a framework would work.

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