Video | Federal Reserve Chair Kevin Warsh: Reject Forward Guidance, Let Market Price Treasury Yields and Exchange Rates Freely

On July 29, Federal Reserve Chair Kevin Warsh stated at a press conference that the Fed is deliberately reducing its market intervention, aiming to obtain more direct information from market signals such as Treasury bond prices and the US dollar exchange rate, rather than influencing market expectations through forward guidance. He believes that in the past 42 days, despite the Fed not taking much action, the market has already undergone a significant tightening, with both nominal and real interest rates rising. The current signals from the market indicate that the US economic output is robust, capital spending and productivity remain strong, and the labor market remains steady.