The Federal Reserve typically telegraphs its interest rate moves in advance, then follows through. This week will provide the clearest evidence yet on whether chairman Kevin Warsh is ending the era of the no-surprises Fed. The big picture: Markets are now putting meaningful odds on the Fed delivering an interest rate hike at the conclusion of its two-day meeting this week. - If the Federal Open Market Committee were to do so, it would suggest a new era in which the central bank is less predictable — accepting more volatility and surprise as the price to be paid for greater policy nimbleness. State of play: In the final public communications before the Fed entered its pre-meeting blackout period, signs were pointing to the FOMC leaving…
Newly confirmed Federal Reserve Chair Kevin Warsh is promising a major course correction at the central bank after years of inflation that crushed working families and exposed the failures of Washington’s cheap-money era. At his Senate confirmation hearing, Warsh called for “a regime change” in Fed policy after former Chair Jerome Powell’s tenure saw inflation […] The post New Fed Chair Promises Major Course Correction appeared first on StoneZone .
Newly confirmed Federal Reserve Chair Kevin Warsh is promising a major course correction at the central bank after years of inflation that crushed working families and exposed the failures of Washington’s cheap-money era. At his Senate confirmation hearing, Warsh called for “a regime change” in Fed policy after former Chair Jerome Powell’s tenure saw inflation soar above 8 percent during the Biden years and remain stubbornly above the Fed’s 2 percent target. As of April, inflation is still running at 3.8 percent, meaning Americans continue to pay more while wages struggle to keep up. Warsh appears ready to challenge the policies that helped create this mess: endless money creation and the Fed’s massive bond-buying program known…Open