Signal over Noise: A new Fed framework

This episode explores the signals in the most consequential Fed debut in nearly two decades: what happened, how markets reacted, and where to go from here. The Fed held rates steady for a fourth consecutive meeting, while Warsh was more hawkish than expected, emphasizing price stability and the Fed’s institutional credibility alongside a shift away from the easing bias. It also examines how he opted for a more concise statement and the decision not to submit a forecast to the Fed’s dot plot.