⚡ Kevin Warsh (Fed Chair nominee): ✔ Inflation is significantly above the 2% target. ✔ Economic activity is growing at a steady pace. ✔ Persistently high prices are a burden. ✔ The recent past does not necessarily have to be a prologue to rising inflation. ✔ The Chairs are unanimous in their commitment to ensuring price stability. ✔ Today's monetary policy statement was shorter and simpler; the old wording is absent. ✔ The statement also omits forward guidance, which is ill-suited to the current state of policy. ✔ I have refrained from presenting my own forecasts. ✔ I am appointing task forces in five areas: communication, the Fed's balance sheet, data sources, productivity and employment, and the Fed's inflation frameworks. ✔ Each independent task force will include the best minds from within and outside the economics profession, supported by Fed staff. ❗ I expect to propose changes, including modifications to the Summary of Economic Projections (SEP). ✔ I anticipate that the communications task force will recommend changes to the SEP. ✔ The data task force will examine new data sources and methodological changes. ✔ The productivity and jobs task force will study the extent of the impact of AI and other general-purpose technologies. ✔ The inflation framework task force will study the factors influencing inflation. ✔ The task forces will begin work within the next couple of weeks. ❗ I expect to see some results from the working groups by autumn. ✔ The 2% inflation target is a long-standing Fed goal; I see no reason to revise it until we have achieved that target. ✔ We have the opportunity and the obligation to ensure inflation is at the 2% level. ❗️This post will be updated.

🚨FED CHAIR WARSH’S SPEECH🚨 Fed Chair Kevin Warsh just changed the game. > Forward guidance is out. > 2% inflation target will stay. > Fed statements are getting shorter. > New policy task forces are being formed. > Economic projections could soon change. The Fed is entering a completely new era.

SUMMARY OF FED CHAIR WARSH’S STATEMENT: 1. The Fed’s shorter policy statement is intended to “convey the facts” to you. 2. Forward guidance in the Fed’s statement is “not well suited” to the current monetary policy environment. 3. New “independent working groups” will be established in five key areas. 4. The working groups will propose next steps, including changes to the summary of economic projections. 5. The Fed will remain committed to its 2% inflation target. 6. The Fed’s monetary policy appears to be restrictive for the housing market, but not for financial markets. A new era of Fed monetary policy is approaching.

Fed Chair: "I've been saying for years: Inflation is a choice."

There's a difference between not telling markets your next move and not telling them how you make decisions at all. Kevin Warsh, at his first meeting as Fed chair, did both. Warsh got high marks for planting a flag on the Fed's 2% inflation target and for shearing the policy statement of jargon that had become a recitation of the obvious. But he also stretched his objection to forward guidance into something broader, using it to sidestep questions about how the committee reasons toward a decision. "It matters to have some sense of how this committee is thinking about how it goes about conducting this business," said JPMorgan's Michael Feroli.

🚨 A new era of Fed policy may be starting. Key takeaways from Fed Chair Warsh's statement: 📌 Shorter policy statements focused on facts, not narratives 📌 Forward guidance may take a back seat in future decisions 📌 5 independent task forces launched to review key Fed functions 📌 Potential changes coming to economic forecasts and projections 📌 The 2% inflation target remains unchanged 📌 Fed policy appears restrictive for housing, but not for financial markets The message is clear: The Fed isn't changing its inflation goal. It's changing how it communicates and operates. For investors, this could mark one of the biggest shifts in monetary policy strategy in years. 👀 #Fed #FederalReserve #Markets #Economy #Investing #Stocks #FOMC

Don’t let those hawkish "No Rate Cuts" headlines spook you! Kevin Warsh is overhauling the Fed with AI-driven productivity metrics and an all-new data framework, and supply-side shocks are fading fast. The Fed’s holding rates steady for show—meanwhile, the long-term bull run for macro assets is just getting underway! New Fed Chair Kevin Warsh dropped the first domino in his debut appearance, reshaping and revolutionizing the Federal Reserve from the ground up. Here’s the breakdown of his core policy shifts: 1.Ditching the Old Playbook for a New Regime The FOMC voted unanimously to hold interest rates, standing firm against political pressure to bend policy. The Fed scrapped forward guidance entirely. Warsh slammed the dot plot as nothing more than a "pencil with an eraser," ruling out market policy teases to lock in maximum flexibility for rate decisions. 2.Full Ownership of Inflation Dynamics He stressed inflation is a policy choice dictated by monetary policy, doubling down on the 2% inflation target. The Fed will pivot to real-time trimmed mean inflation gauges to cut through noisy, skewed economic data. 3. AI as a Disinflation Catalyst Warsh framed artificial intelligence as a generational productivity revolution. He’s betting the surge in productivity will naturally cool inflation—no need for brutal, growth-crushing aggressive rate hikes to tame price pressures.

One of the bigger takeaways from today’s FOMC speech: The Fed wants to move away from forward guidance ✍🏼 Markets have spent years trying to front run what the Fed might do next.. every speech, every dot plot, even the color of Powell’s tie. If this shift is real, the market may have to start thinking for itself again 👀

You would have read/heard me say this about a handful of central bank governors around the world. It’s great to be able to say it about a Federal Reserve Chair: During today’s press conference, Kevin Warsh delivered a true masterclass in central bank communication. #economy #federalreserve #markets @federalreserve #kevinwarsh