Circle Your Calendars for July 29. JPMorgan Executive Says Fed Chair Kevin Warsh Could Raise Rates in As Little as Six Weeks.
Warsh’s taskforces will examine communications, balance-sheet policy and inflation targeting as he seeks less guidance and a smaller Fed balance sheet.
- Federal Reserve Chair Kevin Warsh launched five taskforces to overhaul central bank operations, signaling he would be "tearing up the script" on Fed communications and forward guidance.
- Warsh argued that forward guidance encourages the Fed to cling to forecasts and exacerbate policy errors, contending financial markets should guide central bankers rather than the reverse.
- JPMorgan Asset Management CIO Bob Michael noted the chair's first meeting delivered "quite a jolt" to markets, with Fed officials projecting a rate hike jumping from zero to nine in six weeks.
- Critics warn withdrawing guidance could increase market volatility as investors struggle to second-guess the Fed, though the strategic shift aims to force focus on incoming economic data.
- The July 29 FOMC meeting looms as a critical test, with market participants assigning 53% odds of a rate hike by October while the Fed maintains its 2% inflation target.
22 Articles
22 Articles
Circle Your Calendars for July 29. JPMorgan Executive Says Fed Chair Kevin Warsh Could Raise Rates in As Little as Six Weeks.
The post Circle Your Calendars for July 29. JPMorgan Executive Says Fed Chair Kevin Warsh Could Raise Rates in As Little as Six Weeks. appeared first on 24/7 Wall St.. JPMorgan Asset Management CIO Bob Michael warned that new Fed Chair Kevin Warsh's first meeting delivered a "jolt" to markets. Core PCE inflation hit 129.63 in April 2026, the highest 12-month reading, providing Warsh cover for potential rate hikes despite Michael's view that in…
Kevin Warsh, Fed Transparency, and Corruption
This week was the first meeting under new Fed Chair Kevin Warsh of the Federal Reserve Board’s Open Market Committee (FOMC). Warsh has promised to restructure the Fed, but it is still not clear he means by this. Donald Trump very explicitly picked Warsh because he expected that he would lower interest rates. That goes against Warsh’s past history of being an inflation hawk. In his earlier tenure as a Fed governor during the Great Recession, Wars…
Times of India
The Economic TimesUS Stock Market: Warsh reshapes Fed playbook with leaner messaging and reform agenda
US Federal Reserve Chair Kevin Warsh signalled a major shift in central bank communication by adopting shorter policy statements and focusing more narrowly on inflation and price stability. His first policy meeting suggested reduced forward guidance, sparking expectations of future rate hikes while launching broader reviews of Fed operations and policymaking.
Financial sector actors can see this as a potentially positive development if it allows for a faster and better response to the data. However, there is still some doubt that the central banker appointed by President Donald Trump is the one who seeks to depoliticize the Fed.
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