Warsh’s first meeting as Fed chair made clear that he wants to update how the central bank operates and communicates, SoFi chief market strategist Liz Thomas wrote, pointing to his new task forces and a shorter policy statement that dropped forward guidance.
“While this gives the market less to react to, perhaps it’s a good thing. In my opinion, markets tend to overreact to Fed commentary and can swing widely depending on how investors interpret its messages,” Thomas wrote in her weekly newsletter on LinkedIn.
Even so, Thomas said the meeting was broadly hawkish.
Still, she does not expect a rate hike this year, arguing that the bigger risk is that tighter policy could dampen growth.
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