Warsh's Fed Faces Rate-Hike Test
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- Kevin Warsh faces his clearest early test this week as markets assess whether the new Fed chairman is ending the era of the no-surprises Fed.
- Markets are now putting meaningful odds on the Fed delivering a rate hike, breaking from the institution's longstanding practice of telegraphing interest rate moves before acting.
Why it matters: The Fed's tradition of telegraphing moves in advance means any deviation becomes a major credibility and communication test for new Chair Warsh, and this week's outcome gives investors their first concrete evidence of how his Fed will handle market signaling.
