Warsh's speech signaled that Fed practices over the past forty years have lacked rigor.
“I found this speech in particular to be a very strong kind of message, both a message to the market but also just a kind of message in general that the way the Fed has done business for maybe the last 40 years in some ways has not been as rigorous as it could be,”
Warsh states the Fed must be confident inflation is moving to target at sufficient speed or they have work to do.
“We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do. That's our job ... our mandate ... and our charge to keep.”