Kevin Warsh Is Shifting the Future of the Fed in 1 Major Way -- and It Might Rattle Wall Street
The new Fed chair is already making his stamp on the organization.
Kevin Warsh Is Shifting the Future of the Fed in 1 Major Way -- and It Might Rattle Wall Street
Overview
Kevin Warsh made his first entrance as Federal Reserve chair last week, and he's already changing things up. It has been the historical practice for the Fed chair to provide an outlook for the rest of the year so Wall Street and armchair analysts can try to anticipate how things will play out, but Warsh stepped back from that practice.
"I think financial markets perform best when they react to incoming data," he said. "I think the financial markets work less efficiently when they ask a question, 'How will the Federal Reserve react to that incoming information?'"
Details
As a result, he refrained from offering guidance about future moves and did not participate in the Federal Open Market Committee's (FOMC) "dot plot," which charts the committee's thoughts about the future.
Source
Originally published at www.fool.com.
