Warsh guards a line the US Treasury has already crossed
“The communication strategy is driving a loss of Fed credibility,” said Eric Rosengren, former head of the Boston Fed.
Not every respondent was critical.
Jon Faust, a Johns Hopkins fellow who advised former chair Jay Powell, told the FT that Warsh has largely overcome fears he would defer to White House pressure and has not caused internal turmoil at the US central bank.
Strategists expect Friday’s address to stay philosophical, which is the risk for anyone holding long duration.
“More of the same, I think, would be seen as a disappointment to the markets, which could exacerbate the long-end selloff that we have seen,” Molly Brooks, US rates strategist at TD Securities, told Bloomberg.
