Will the Shadow Fed Chair Please Stand Up? | Metals Mine

  • Will the Shadow Fed Chair Please Stand Up?

    From stayathomemacro.substack.com

    Last week, Kevin Warsh did his best to stay behind the curtain and deliver on his promise of a quieter Fed. The FOMC statement was cut by more than half, to 130 words; Warsh did not participate in the Summary of Economic Projections, which includes the dot plot, and at the press conference, he refused to elaborate on monetary policy or inflation beyond what was in the statement. Warsh defended his guarded stance on information grounds. Market prices, he argued, are the most important signal the Fed has, but when markets are only "reflecting back what we've said," the Fed loses that signal, he claims. Quieter ... (full story)

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