Warsh's Quiet Revolution at the Fed Wins Praise from Howard Marks

Howard Marks, co-chairman of Oaktree Capital Management, has expressed his preference for a less interventionist approach from the Federal Reserve under Kevin Warsh. Warsh was confirmed as Fed Chair on May 13, 2026, and officially took office on May 22. Since then, he has launched five task forces aimed at modernizing Fed operations, including reducing its reliance on forward guidance.

Forward guidance refers to the practice of telegraphing future policy moves to markets well in advance. Warsh has moved quickly to dial back this approach, instead focusing on concrete evidence before acting. His philosophy was clearly articulated at Jackson Hole on August 28, 2026, where he laid out his vision for a Fed that waits for genuine confidence in inflation targeting before easing policy.

Marks has been making this argument for years, long before Warsh's nomination. He believes the Fed should stick to its dual mandate of price stability and maximum employment, acting only when there are observable signs of genuine economic distress.