Mapping the market's reaction to a Warsh Regime - Sound Money: USD up, Flattener - Fed Independence Fears: USD down, Bear Steepener - Rate Cuts (+ than priced in): USD down, Bull Steepener - QT: USD up, Bear Steepener - Risk Off: USD up Think Warsh's New Fed-Treasury Accord would try to anchor the Fed Funds Rate lower, to let Treasury flood the market with T-Bills, while QT eventually removes the Fed's long-end support. The latter has the market concerned. So, once confirmed, time to pay extreme attention to anything Warsh says about the size of the Fed's balance sheet.(Alex Krüger)