Fed Put Is Dead Under New Chair Kevin Warsh, Analyst Says

What was said

"I think Warsh has very much tried to signal that that's gone. That's not going to be back. I think the degree that he's removed it is meaningful, and I think it's something that should change the way investors perceive kind of Fed policy."

Bob Sheehan of Lighthouse Macro argues that the Fed's historical practice of stepping in to support falling risk assets has ended under new chair Kevin Warsh. This represents a major regime shift after a decade where investors relied on the Fed to backstop sell-offs with rate cuts and liquidity. Sheehan says this changes how traders should position, making defensive postures more necessary.