US Stock Market: Warsh reshapes Fed playbook with leaner messaging and reform agenda

New Fed Chair Warsh kept rates unchanged at 3.50%-3.75% in his first FOMC meeting but delivered a more hawkish tone focused on inflation, prompting investors to strengthen expectations of a rate increase and pushing bond yields higher. Policy statements were notably shorter with reduced forward guidance, and language changes acknowledged inflation as above the 2% target while reframing employment gains relative to workforce growth. The FOMC voted unanimously for the first time in a year, and Warsh announced five task forces to review Fed communications, balance sheet policy, inflation framework, productivity, and use of alternative data.