Fed Chair Warsh's Framework Takes Shape: Abandoning the Neutral Rate, Policy Logic Similar to Greenspan's

Odaily News: Fed Chair Warsh habitually measures his tenure in days, and on the 127th day of his leadership at the Federal Reserve, the contours of an institutional restructuring have already emerged. He quickly adjusted the post-FOMC press conference mechanism, not only significantly compressing the duration of the press conference, but also rearranging the seating order for reporters' questions alphabetically by the English names of news organizations.

These seemingly superficial adjustments in form, in reality, reflect Warsh's complete break with his predecessors in monetary policy thinking and communication style. At the September 16 press conference, he directly rejected the traditional neutral rate analytical framework, explicitly stating that the concept is only "academically useful" and has no guiding significance for the Fed's rate hike decisions. (Substack)