Warsh wants markets to guide the Fed, not the other way around

Live updates

1. 1d ago

   Fed Chair Kevin Warsh Shifts Strategy to Market-Driven Guidance

   Federal Reserve Chairman Kevin Warsh is restructuring the central bank by establishing task forces to review its operations. He has ended the practice of forward guidance, stating that financial markets are the most important information source for central bankers. This shift comes as he adopts an inflation hawk stance despite previous hints at rate cuts.

   What's confirmed:

   • Chairman Kevin Warsh established task forces and working groups to rethink Fed operations and address five top policy priorities.
   • Warsh stated that financial markets are "probably the most important source of information to guide central bankers."
   • The Federal Reserve maintained current interest rates during the June 16-17 meeting.
   • Warsh has ceased the use of forward guidance to signal future policy moves.

   Still unconfirmed:

   • Warsh has assumed the role of an inflation hawk.
   confidence 90%
2. 3d ago

   New Fed Chair Kevin Warsh Signals Policy Shift and Possible Rate Hikes

   Federal Reserve Chairman Kevin Warsh held his first news conference after a decision to hold interest rates steady. Warsh intends to reduce the signals the Fed sends to the public, preferring that markets guide the Fed. This approach comes as the central bank faces resurgent inflation.

   What's confirmed:

   • The Federal Reserve held interest rates steady.
   • Kevin Warsh is the new chair of the Federal Reserve.
   • The U.S. dollar rose to a one-year high.
   • Warsh wants the Fed to send fewer signals and instead let markets guide the central bank.

   Still unconfirmed:

   • The Fed may hike rates in 2026.
   • Warsh is facing a bind between Donald Trump and inflation following a new report.
   • Warsh is planning a Fed overhaul.
   confidence 90%