Warsh Wants Less Fed Talk, Risking More Market Surprises

Warsh Wants Less Fed Talk, Risking More Market Surprises Former Federal Reserve Chair Ben Bernanke famously said monetary policy is 98% talk and only 2% action. Kevin Warsh wants to shake up the mix. The new Fed chief, who takes charge of his first interest-rate meeting this week, has promised an overhaul of communications. Without giving much detail, he’s dropped hints that point toward less talk. The Fed tries too hard to provide a roadmap of its plans, he told Congress during his confirmation hearing. And its policymakers “speak quite frequently.”