Kevin Warsh's First FOMC Meeting After Taking Office: Rate Cut Expected to Be Removed from the Table
Ahead of Federal Reserve Chair Kevin Warsh's first regular meeting after taking office (6month 16~17day), expectations have emerged that a rate cut will be removed from the table. It was also reported that Chair Warsh is considering revamping the Fed's internal communication methods, including abolishing the dot plot and forward guidance.
Federal Reserve Chair Kevin Warsh's first regular meeting of the Federal Open Market Committee after taking office will be held on 6month 16day and 17day. Ahead of the meeting, expectations are emerging that a rate cut will be removed from the table. This expectation reflects a forecast of the Fed's future policy direction.
Some forecasts say that if the Fed needs to adjust interest rates in the second half of this year, an increase is more likely to be the direction. These forecasts are based on the premise that the policy stance will change following Chair Warsh's inauguration. The specific grounds and assessment are expected to be confirmed by the meeting's outcome.
It is reported that Chair Warsh is considering an approach of putting monetary policy decisions on hold for the time being. There have also been reports that he is considering revamping the Fed's internal communication methods, including abolishing the dot plot and forward guidance. The scope and schedule of the changes have not been disclosed.
Some references indicated that circumstances could arise in which President Trump would have to be informed of bad news, such as the possibility of an interest-rate hike. The reference is classified as a statement confirmed before and after the meeting. The context of the statement and the official position should be verified in the meeting materials.
The statement released at the meeting and the chair's remarks are 17days later. The released documents and the contents of the press conference are expected to disclose the specific policy stance. The relevant documents can be verified through the Federal Reserve's official statement and the chair's press conference.
The key issues at this meeting are the direction of interest rates and whether internal communications will be reorganized. The results of both issues will be disclosed immediately after the meeting ends. Please verify the meeting outcome and the chair's remarks through official documents.
Sources: 연합인포맥스
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