Kevin Warsh kept rates unchanged, but his rejection of a "soft" inflation target and new approach to Fed communication sent stocks, bonds, gold and the dollar swinging.
Warsh (new Fed Chair) declares no soft inflation target—only 2%—rejecting Fed easing after one good inflation print. Bigger shift: Warsh ends forward guidance, letting markets react to economic data not Fed hints—ending decades of 'trading the Fed'.
For a few minutes, Wall Street thought it knew the script.
The Federal Reserve left interest rates unchanged at 3.50%-3.75% in a notable 9-3 vote split.
The policy statement offered few surprises.
Stocks initially moved higher, suggesting investors saw little reason to rethink the outlook.
Then Fed Chair Kevin Warsh started answering questions.
Fed's warsh rebuked by investors craving a real inflation fight
Federal Reserve Chair Kevin Warsh defends holding interest rates steady as dissent grows
Warsh's Wall Street cred takes a hit as investors doubt the Fed chair's inflation-fighting resolve
The bond market to Kevin Warsh: What are you doing about inflation? | CNN Business
Analysis: Fed Chairman Warsh's credibility in question after leaving interest rates unchanged
Kevin Warsh’s inflation message misfires, fuels bets on Fed rate hike
Federal Reserve Chairman Kevin Warsh defends steady interest rates amid inflation fight
Warsh-led Fed leaves rates on hold
Surprise Fed Rate Hike Can't Be Ruled Out; What It Means For S&P 500
Kevin warsh delivers a 'perplexing' Fed briefing, and gets a bronx cheer
New Fed Chair Kevin Warsh scrapped forward guidance and vowed to deliver price stability in his debut. Stocks fell and gold…
Investors doubt Fed Chair Warsh's inflation strategy. Rate cut in next three meetings at 1.7% YES, rate hike at 63% YES.
Fed Chair Kevin Warsh defended the FOMC's 9-3 vote to hold rates at 3.5%-3.75%, vowing no soft inflation target as September hike…
In his first press conference, Warsh reaffirmed the Fed's commitment to price stability. But what that means in practice is…
By Jeffry Bartash and Joy Wiltermuth
Kevin Warsh's first Federal Reserve meeting as chair saw interest rates held steady, but a shift away from forward guidance…
