PremiumBy Seth Carpenter, chief economist at Morgan StanleyKevin Warsh’s first meeting as Fed Chair marked a new chapter. Chair Warsh intentionally gave little guidance on the path of monetary policy; he has said that reducing “forward guidance” is central to his philosophy. He highlighted important forthcoming changes, but as with the policy rate, he did not specify the likely path.
Morgan Stanley: The "Mystery" In The Fed Dots, And Why The Fed Will Be "Very Different" One Year From Now
"How different will the Fed be a year from now? Very different... in many aspects of the Chair’s communications. The size of balance sheet could be very different. But when it comes to monetary policy through rates, I am less convinced the change will be as stark."
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