Warsh’s Fed Takes a Price-First Turn and a Broad Makeover

In his first act as Fed chair, Kevin Warsh signaled a hawkish tilt on inflation and unveiled a plan to overhaul Fed operations—from forecasts and guidance to AI use and internal processes—via five task forces and a shorter policy statement. Reactions from top economists and market strategists praised accountability and reform but warned that less forward guidance and broader changes could unsettle traders, while keeping a focus on price stability and potential balance-sheet reduction.