Warsh Forces Bond Traders to Do Their Job

Kevin Warsh is trying to change how the Fed communicates, and bond markets may have to adjust to a world with less hand-holding from the central bank.Mike Armstrong and Marc Fandetti debate Warsh’s approach to Fed messaging, why bond traders are reacting so strongly, and whether the Fed’s long era of forward guidance has distorted price discovery in long-term interest rates. They also preview SpaceX’s first earnings report as a public company, why Elon Musk’s ability to sell the future may matter more than the numbers, and what AMD earnings could reveal about the AI chip trade. Plus, they discuss the strengths and drawbacks of the 401(k), why retirement planning has become more complicated for individuals, the yen intervention’s impact on Japanese exporters like Toyota, and whether Massachusetts’ economy is really in as much trouble as critics suggest.