Warsh's gamble: A quieter Federal Reserve could mean volatile markets, higher rates (opens original article in a new tab)

Federal Reserve Chair Kevin Warsh is reducing transparency by cutting communication and removing forward guidance, which could increase market volatility and higher borrowing rates, mirroring past approaches under Alan Greenspan.

• Federal Reserve Chair Kevin Warsh reduced transparency by cutting the interest-rate decision statement to 132 words from 341 and removing forward guidance on future moves.
• Analysts warn that reduced Fed communication could lead to increased market volatility and higher borrowing rates for consumers and businesses.
• Warsh's approach mirrors former Fed Chair Alan Greenspan's opaque style, with plans to establish task forces to review Fed operations and communications.