Former Federal Reserve economist Claudia Sahm warned Monday that the new Fed Chair Kevin Warsh‘s efforts to reduce public communication could leave investors relying on alternative signals to interpret the central bank’s policy direction.
“Reading the Fed will now mean listening to every official and stitching their comments together over time, a noisier and less precise process than we are used to with recent Fed Chairs,” Sahm said in a blog shared on X.
Warsh Scales Back Fed Guidance
The criticism follows Warsh’s first policy meeting as Fed chair, where the central bank kept interest rates unchanged and adopted a more limited approach to public communication.
During his press conference, Warsh avoided discussing the future path of interest rates, arguing that a less communicative Fed would allow policymakers to receive clearer signals from financial markets.
