New Fed Chair Unveils Major Policy Reforms, Ends Forward Guidance

Federal Reserve Chairman Kevin Warsh has introduced significant operational reforms, including the abolition of forward guidance and his personal Summary of Economic Projections. While the FOMC maintained interest rates, policymakers' median projection now suggests a rate hike this year, indicating a hawkish shift amid rising inflation expectations. Markets responded with a sell-off in risk assets and an increase in the dollar and Treasury yields.