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Gregory Daco reports that Kevin Warsh is expected to overhaul how the Federal Reserve communicates with Wall Street.
Several former top officials anticipate that Warsh may begin reversing the central bank’s forward guidance on interest rates as early as the mid-June Federal Open Market Committee meeting.
Daco previously reported that the U.S. ISM manufacturing index reached a four-year high in May, with stronger orders and production activity noted in the latest data. He also observed that longer-maturity U.S. Treasury yields recently climbed to near-decade highs, presenting fresh challenges for global bond investors tracking developments in the bond market. These recent trends provide context for the anticipated shift in Federal Reserve communication.