Warsh's Fed: A New Era of Uncertainty The Federal Reserve, under Jerome Powell's leadership for most of the past decade, was known for its predictability.
The central bank's reaction function, shaped by a deep understanding of economic theory and empirical evidence, allowed markets to anticipate and prepare for policy decisions.
Powell's departure and Jay Powell (no relation) taking over have dramatically shifted the dynamics at the Fed. However, it is Michael Warsh's tenure that has introduced a new level of uncertainty.