Investors are becoming too relaxed about the future direction of the Federal Reserve and need to pay closer attention to the composition of its next board of governors, a strategist told CNBC.
The next leader of the U.S. Federal Reserve will be named Thursday and most expect President Donald Trump to have chosen Jay Powell, a member of the Fed's current board. What's not so certain is who will be the next Fed chief's closest advisers and what influence they could have on the bank and, ultimately, markets.
"The tricky part of this story is that we get Powell (as Fed chair, if he's nominated) but what happens to the other three seats (on the Fed's board of governors)?" Luis Costa, head of CEEMEA FX and rates strategy at Citi, told CNBC Thursday.