Warsh’s ‘Forward Silence’ Risks Bigger Treasury Market Swings

Warsh’s ‘Forward Silence’ Risks Bigger Treasury Market Swings Investors are worried that Federal Reserve Chairman Kevin Warsh’s plan to reduce the number of interest-rate decisions each year could be a recipe for more volatility in the $32 trillion Treasury market. Announced by Warsh after the Fed left rates unchanged at Wednesday’s policy meeting, the plan would phase in a shift to six rate decisions a year from eight, with the remaining two gatherings reserved for broader strategic discussions. The move, which would cut the number of decisions down to seven next year, is intended to give officials “time and space” for deliberations, he said.