Prudential’s chief market strategist, Quincy Krosby, offered her insight on regime change at the Federal Reserve and the monetary policy’s market impact at the Fed in her Q2 2018 “Regime Change” market commentary.

On new Federal Reserve Chair Jerome Powell’s first day as chairperson, he seemed positive about the economy despite a 4 percent market sell-off.

“We don’t manage the stock market, but it enters into our thinking," Powell said. "The stock market is not the economy, but it is very much a factor in the economy’s overall performance.”

In his previous role as a Federal Reserve governor under Janet Yellen, Powell said low interest rates could result in “excessive leverage and broadly unsustainable asset prices” and that he wants to move “monetary policy towards normalization,” but markets are wary of “premature tightening.”

Contact Lisa Bennett or Dara Scerbo to speak with Krosby about her opinions of the market.