Kevin Warsh's Federal Reserve Just Issued an 11-Word Warning to Wall Street. Here's What History Says Comes Next.
The Fed's latest minutes contain an 11-word warning that could spell trouble for today's debt-fueled AI rally.
Overview
Last month, the Federal Reserve wrapped its first meeting with Jerome Powell's replacement, Kevin Warsh, at its head. The target rate remained unchanged at 3.5% to 3.75%, and the minutes, released a few weeks after the meeting, mostly read the way Federal Reserve minutes always do -- very dry.
But within them was an 11-word warning that investors should pay attention to now. Years of above-target inflation "could begin to affect inflation expectations and wage- and price-setting decisions." That may be dry central-banker language, but it could have major ramifications for the S&P 500 (SNPINDEX: ^GSPC).
Details
Here's how.
Source
Originally published at www.fool.com.