Kevin Warsh has finished his first FOMC meeting as Fed Chair, and Wall Street may not like what comes next.

For years, markets relied on the Fed telling them exactly what was coming.
That era is over.
Warsh made it clear:
- Inflation is still too high
- The 2% target is staying
- The Fed is done giving advance warnings
- Policy remains restrictive
- The housing market is struggling
- Financial markets are not
Most importantly, all 19 voting members agreed not to raise rates.
Warsh openly criticized years of inflation misses and vowed to restore credibility to the Fed.
When asked about future rate decisions?
“I can’t give you any guidance on what we’re going to do next.”
That’s a direct message to traders betting on easy money. The Fed wants optionality and the market wants certainty.
Only one side gets what it wants.
If inflation stays hot, rate hikes are back on the table.
If growth slows, cuts could return but for the first time in years, nobody knows which comes first.
We know under Powell, markets traded the Fed’s roadmap.
Under Warsh, there is no roadmap.
One thing became clear today: Kevin Warsh is not Jerome Powell.