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Axel Merk outlines expectations for Warsh's approach to upcoming policy actions. According to Merk, Warsh is seeking to demonstrate new leadership, with a focus on indicating no change to current rates and likely repeating concerns that inflation remains elevated.
Merk also expects Warsh may reduce forward guidance, potentially by shortening the official statement and removing elements such as dot plots.
Merk has addressed related developments in recent commentary. He noted the recovery in Dubai's real estate market, suggesting investors see reduced impact from the Iran war. In another statement, Merk observed that the California wealth tax would disproportionately affect entrepreneurs with illiquid paper wealth.