Warsh Breaks with Tradition as Fed Ditches Forward Guidance

The Federal Reserve's decision to hold interest rates at 3.5-3.75% was overshadowed by the lack of forward guidance from new Fed Chair Kevin Warsh.

Warsh, in a departure from his predecessor Jerome Powell's approach, is pushing for the market to price in economic data rather than relying on central bank predictions.

He believes that by communicating less, markets will become sharper and more responsive, forcing investors to think for themselves.

The yield curve did respond to the decision, with the 10-year yield rising 7 basis points to 4.68%, while the 30-year jumped 12 basis points to 5.22%.