Man Group: If the market questions the new chairman, the Federal Reserve may need to restart QE

Jinse Finance reported that Man Group stated that if the bond market begins to question the independence of the next Federal Reserve Chair, the Fed may have to resort to quantitative easing (QE) policies to lower long-term borrowing costs. As the world's largest publicly listed hedge fund group, Man Group's Chief Market Strategist Kristina Hooper pointed out that investors need to recall what happened in the UK in 2022: at that time, due to a lack of confidence in then-Prime Minister Liz Truss's economic policies, traders sold off UK government bonds en masse. In a LinkedIn post, Hooper wrote that since then, the UK's borrowing costs have remained higher than many other G7 economies, serving as a reminder that "the credibility of public officials is crucial." She said, "If someone perceived as lacking independence is chosen as the Federal Reserve Chair and focuses on lowering long-term interest rates, I suspect they will have to resort to QE, as this is the best opportunity to achieve that goal."