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.
45 Articles
45 Articles
Morning Bid: Warsh debut raises rate-hike stakes
(Corrects to delete extraneous words from paragraph 2) A look at the day ahead in European and global markets from Ankur Banerjee Federal Reserve Chairman Kevin Warsh seized the stage in his debut press conference, unveiling an ambitious review with broad ramifications and tacitly turning hawkish by underscoring the central bank’s resolve to bring inflation to heel. While he offered no near-term policy guidance, fresh quarterly projections rev…
This week's meeting of the Federal Open Market Committee (FOMC), whose monetary policy decision will be announced today, is the first to be led by the new president of the Board of Government of the Federal Reserve Bank of the United States (Fed), Kevin Warsh.Warsh's arrival at the presidency has generated high expectations among analysts and financial market participants, in light of the reform proposals on the Fed's operation that he has long …
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