Warsh's debut Fed press conference may reveal his strategy for inflation, rates
Warsh is expected to outline a less talkative approach as policymakers weigh steady rates and updated projections amid inflation still above target.
- New Federal Reserve Chairman Kevin Warsh will hold his first press conference on Wednesday following the Fed's policy meeting, marking his transition from policy analyst to the world's most important central banker.
- Inflation remains stuck more than a percentage point above the Fed's 2 per cent target, while Governors are widely expected to hold benchmark interest rates steady in the 3.50 per cent-3.75 per cent range on Wednesday.
- Warsh has criticized the Fed's 'aspirational' tools, including the 'dot-plot' chart of rate expectations; while at Stanford University's Hoover Institution, he sketched plans to lower the Fed's $6.71 trillion balance sheet.
- William English, former head of the Fed's monetary affairs division and now a professor at the Yale School of Management, warns it's a "bad look" to ignore high inflation, noting Warsh "does not want to get too far in front of that."
- Warsh needs broad consensus among his 18 fellow policymakers to change the Fed's communications tools, and he faces a challenge balancing his preference for less 'forward guidance' against potential neutral policy language.
17 Articles
17 Articles
Kevin Warsh Ready to Stop Telegraphing Fed Policy. How Will the Market React to Flying Blind?
For more than a decade, investors have enjoyed something unusual from the Federal Reserve: clues. Not certainty, but hints. Through quarterly economic projections, the famous “dot plot,” and carefully crafted forward guidance, the Fed has tried to reduce surprises and help markets prepare for future policy moves. That approach may be about to change. As ... Kevin Warsh Ready to Stop Telegraphing Fed Policy. How Will the Market React to Flying Bl…
Warsh's debut Fed press conference may reveal his strategy for inflation, rates
New Federal Reserve Chairman Kevin Warsh has talked at length in recent years about the U.S. central bank's balance sheet, the need to say less about interest rates and why it should not dip into issues like climate change.
Wall Street Is Preparing for Kevin Warsh’s First FOMC Meeting as Head of the Fed
It’s Warsh’s world; we just live in it. The Federal Open Market Committee (FOMC) meets for the first time this week under new Federal Reserve chair Kevin Warsh. With the labor market looking solid but inflation jumping to a three-year high of 4.2% in May, a rate cut likely isn’t in the cards. As of Friday, CME FedWatch puts the probability of the Fed holding rates steady at nearly 99% for this meeting, and 92% for the one in July. But it’s not…
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