🇺🇸 New FED Chair Kevin Warsh Signals Major Shift in Monetary Policy

The new Chair of the U.S. Federal Reserve (FED), Kevin Warsh, stated that he does not support forward guidance policy. This means the FED will limit providing signals about future policy decisions, causing the market to face higher levels of uncertainty. At the same time, the FED also announced new economic forecasts.
🏦 FED Reduces Market Guidance
Kevin Warsh believes the FED has provided too many signals in the past. Under the new leadership:
* Limit commitments about future interest rate paths.
* Reduce market dependence on signals from the FED.
* Make policy expectations more unpredictable.
➡️ Volatility in financial and crypto markets may increase as investors react more to actual economic data.
📊 FED's New Economic Forecasts
📈 Economic Growth
* This year: 2.2%
* Next year: 2.3%
👥 Unemployment Rate
* This year: 3.6%
* Next year: 3.3%
📌 Inflation
* This year: 3.8%
* Next year: 3.6%
➡️ These forecasts indicate that the FED still faces a significantly higher inflation challenge than the 2% target, while the economy and labor market remain relatively resilient.
🎯 Notable Points
✅ Inflation is still expected to be considerably above the 2% target.
✅ The FED is undertaking its largest overhaul in many years.
✅ Financial and crypto markets may enter a more volatile phase due to increased uncertainty.