Warsh Era Begins with Rate Pause and Sweeping Review

Kevin Warsh's first policy announcement as Fed chief marked a shift in US monetary policy on Wednesday, with officials deciding to leave interest rates unchanged despite inflation being above their target. The move was seen as a return to a more traditional approach, similar to that used by former Fed Chairman Alan Greenspan.

The new policy statement, which dropped forward guidance on future actions, reflected Warsh's disdain for expansive communication about the central bank's intentions. 'I can't give you any forward guidance about what we're going to do next,' he said at his debut press conference.

Warsh also announced a sweeping review of how the Fed conducts its business in key policy areas, including its balance sheet, communications, data sources, productivity and jobs, and the inflation framework. This move was seen as an effort to make the central bank leaner and possibly more opaque.