New Fed Chair Kevin Warsh Just Broke 14 Years of Precedent With A Controversial Move That Signals the Beginning of A New Regime
Warsh kicked off his first official meeting as chair of the Federal Open Market Committee with a bang.
New Fed Chair Kevin Warsh Just Broke 14 Years of Precedent With A Controversial Move That Signals the Beginning of A New Regime
Overview
In his first official meeting, new Federal Reserve Chair Kevin Warsh didn’t waste any time in implementing what many speculate is the beginning of a regime change at the quasi-private agency.
The Fed left interest rates unchanged within the 3.50%-3.75% range. But, among several big changes, Warsh confirmed that he abstained from participating in the rate-setting Federal Open Market Committee’s (FOMC) Summary of Economic Projections (SEP), which includes the “dot plot.”
Details
The “dot plot” shows where each of the 19 members of the FOMC believes the federal funds rate, the Fed’s benchmark overnight lending rate, will land at the end of each of the next three years and over the longer term.
Source
Originally published at www.fool.com.
