Warsh Unveils New Fed Strategy: Markets, Not Central Bank, Drive Decisions

Kevin Warsh's first press conference as Chairman of the Federal Reserve has sparked interest in the financial world. While some may see his old-school thinking as a minority opinion, it is actually a return to orthodoxy at Cove Street.

Warsh emphasized that the central bank need not always be the center of attention and that market participants are learning to play the ball, not the referee. He also stressed that there is only one target for inflation - 2% - and that there will be no soft targets on his watch.

The press conference was described as a 'family fight' with three dissents from Warsh's colleagues. Despite this, he expressed confidence in his team's ability to deliver stable prices and combat high inflation.