AXIOS (Neil Irwin) - What would a rate hike signal about the new Fed chief's MO?
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…