Fed's Warsh Talks Big Game; Will Focus On Credibility First -- Market Talk

Dow Jones05-15

Fed Chair Kevin Warsh has indicated a need for regime change and has been critical of monetary dominance facilitating profligate fiscal policies and blurring the central bank's core mission, says ANZ. He has also been critical of the Fed's models, which are rooted in new Keynesian economics, as well as its inflation analytics and communications policy, ANZ adds. So much change can be expected, but it will take time to implement, it adds. Still, Warsh will initially build his credibility with markets and the public by committing robustly to Fed independence, so expect no immediate departure from the FOMC's on-hold stance, ANZ says.(james.glynn@wsj.com; X @JamesGlynnWSJ)

(END) Dow Jones Newswires

May 14, 2026 18:35 ET (22:35 GMT)

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