David McNamara: The US Fed’s ‘say nothing’ strategy testing markets

Chair Kevin Warsh eschewed providing forecasts for the Fed’s June macro projections, and the Fed has dramatically reduced the length of its monetary policy statements since his arrival

US Federal Reserve chair Kevin Warsh has eschewed providing forecasts for the Fed’s June macro projections. Picture: Bloomberg

In the period since the US Federal Reserve monetary policy decision, pressure has mounted on new chair Kevin Warsh’s ‘say nothing’ strategy. 

The abrupt departure from any form of forward guidance has rattled bond markets and contributed to the rise in long-dated US Treasury yields. US 30-year yields are now trading around 5.2%, and while off the recent 5.3% peak, are over c.20bps higher since Warsh assumed the chair in May.