economy
Chairman Warsh Drastically Alters Fed Rate Statement. Here's What's Changed
This is a comparison of Wednesday's Federal Open Market Committee statement with the one issued after the Fed's previous policymaking meeting in April.
TL;DR
- The Federal Reserve's FOMC statement has been drastically shortened under Chairman Kevin Warsh.
- The new statement eliminates forward guidance, which Warsh deems "not well suited for the current policy conjuncture."
- Information on how members voted is no longer included; the statement now only indicates unanimous decisions.
- The statement provides less detail on the Fed's view of current inflation trends.
- This change is viewed by Fed watchers as part of a "regime change" promised by Warsh, who has criticized the Fed's communication for leading to policy errors.
- The statement is described as "shorter, simpler and it dispenses with some older language," giving "just the facts."