Warsh's Silence Tests Market's Mettle Ahead of US Jobs Report

The Federal Reserve under new chair Kevin Warsh has stopped providing guidance on monetary policy, leaving markets to navigate uncertainty.

Economists polled by Dow Jones expect 83,000 new jobs and an unchanged 4.2% unemployment rate in Friday's July jobs report, which is the first real test of the Fed's new approach.

The lack of guidance has led to a market repricing itself daily, with traders now putting the chance of a September interest rate rise at around 58%.

Bank of America expects a quarter-point rise at each of the remaining three meetings, while Citigroup predicts three cuts by January due to concerns about inflation and job growth.