Warsh has adopted a hands-off communication strategy that lets markets interpret data rather than steering reaction through Fed signals, a departure from recent predecessors.
“ look at Fed functions. Among their tasks are an assessment of how policymakers view inflation, the balance sheet, the data points that influence decisions, communication strategies and communications. On the final point, Warsh has taken a unique approach compared to his recent predecessors: Rather than seeking to steer reaction through carefully placed signals, he has preferred a more hands-off approach that lets markets interpret data and send signals to the Fed. It's a strategy that has met with mixed reviews so far and could generate adverse reaction. ”
Warsh notes profit margins are quite elevated relative to history with low equity volatility.
“he says profit margins are quite elevated related to history and overall equity market, the volatility is low.”
Warsh observes profit margins are elevated relative to history and equity volatility is low.
“profit margins are quite elevated related to history and overall equity market, the volatility is low.”