Closing Bell Closing Bell Overtime: 1/30/26
Jan 30, 2026
Loretta Mester, former Cleveland Fed president and economist who analyzes Fed policy and central bank independence. She weighs in on Kevin Warsh’s nomination and what it means for rates and the balance sheet. She discusses the importance of Fed independence and the committee’s diverse views. Short, clear takes on market reactions to policy moves.
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Warsh Nomination Reprices Fed Outlook
- Kevin Warsh's nomination immediately shifted market expectations toward rate cuts but left uncertainty about feasibility.
- Markets priced cuts into 2026 while debate remains over how much easing the Fed can responsibly deliver.
Memory Demand Looks Structural Not Cyclical
- Memory and data storage stocks surged as customers signed multi-year deals, tightening supply.
- Firms like Sandisk and Western Digital saw explosive gains, reshaping the industry's boom-bust narrative.
Dollar Strength Triggers Rotation
- A stronger dollar and unwinding erratic flows punctured rallies in memory and metals.
- Markets rotated to defensive sectors as liquidity and trade flows normalized.