Wall Street’s Counter-Revolutionaries Demand the Fed Stay King of the Bond Market
Kevin Warsh used his first meeting as Federal Reserve chairman to announce a break with the communications regime that the Fed has deployed for nearly two decades. The policy statement shrank. Warsh withheld his own dot from the Fed’s interest-rate projections. He announced the end of forward guidance and told investors to spend less time trying to anticipate the Fed’s policy and more time watching the economy.
The bigger picture here is that Warsh has announced the end of financial crisis-era monetary policy and a return to normalcy. Back in the bad old days of the global financial...
Read the full article here