REGIME RESET

Fed Chair Warsh made it clear in his first meeting that regime change is in. Of the 19 persons on the committee, 18 provided rate/inflation/GDP projections. The press statement was 130 words versus 341 words for Powell’s last, and it provided no forward guidance. Less communication is on tap. Somewhat surprisingly, given his recent statements, Warsh showed interest in raising rates and emphasized that inflation is clearly public enemy #1.