US - Fed 05 (Feb 24 - Dec 27)

[winston]

Warsh era began with dialed-down market communication

As expected, the new Fed chair’s first FOMC held rates steady at 3.50%-3.75%, albeit with a hawkish bias.

We believe the real wild card lies in a policy framework reset:

Kevin Warsh's deliberate reduction in forward guidance signals less "hand-holding" and means more market speculation and volatility.

Specifically, the announcement of five separate task forces (including Fed communications, balance sheet policy, data sources, productivity/jobs, and the inflation framework) indicates the new chair’s ambition for structural reforms over the medium-term.

Source: UOBKH

[behappyalways]

Right now, the hardest thing for Fed watchers to understand is the FOMC policy decisions are now made by twelve independent voters, not a chairman who tells the other eleven how to vote.
https://x.com/biancoresearch/status/2085671198348718093

[behappyalways]

Fed Hikes Rates For First Time Since July 2023, Signals 1 More Hike In 2026
https://www.zerohedge.com/markets/fomc-41