U.S. Weekly Update – Changing Guards Amid Washington Uncertainty

 Index Performance

Macro Viewpoint

The guard changes at the Federal Reserve, with Kevin Warsh scheduled to act as the Chair of the Board of Governors of the Federal Reserve System. According to official statements from the White House, “Mr. Warsh has a distinguished background with degrees from Stanford University and Harvard Law. Mr. Warsh has also served as a Morgan Stanley executive and a leading economic advisor to the Bush Administration, and was the youngest Federal Reserve Governor involved in the management of the 2008 financial crisis.” The transition of the Fed chair is expected and aligns with ongoing disagreements between current Chair Jerome Powell and President Donald Trump regarding interest rate policies. President Trump has criticized Chair Powell for his perceived inaction on lowering interest rates, whereas Chair Powell has adopted a “wait-and-see” approach, citing uncertainty around the economic impact of tariffs imposed on a broad range of countries.

In other developments from Washington: a partial government shutdown occurred over the weekend. Unlike previous extended shutdowns, this shutdown is expected to be short-lived and largely centers around funding for the Department of Homeland Security. A resolution is anticipated once the House votes on the matter.

On the Yield Front

Yields

Fund Flows by Asset Type

At the close of the LSEG Lipper fund flows week ending January 30, 2026,