MacroFinancial Analysis
Analysis of market-moving economic and policy-related developments consistent with decades of experience in economics and finance, without unnecessary jargon or complications.
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- Aug 28, 2026
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Chairman Warsh’s “Reaction Function” (opens the original)
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Federal Reserve Chair Kevin Warsh has left no doubt that he does not support the use of forward guidance in, in his words, “normal times”. In his view, the present is one of those periods when forward guidance is inappropriate. In lieu of forward guidance, there is keen interest in the Chair’s reaction function — how he envisions monetary policy, specifically, interest rate policy, should respond to economic developments.In today’s remarks at the annual Jackson Hole symposium hosted by the Feder
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