Fed Communication Difficult for Markets, May Drag on Long Bonds, Equities -- Market Talk

0609 GMT - Federal Chair Kevin Warsh's approach of eschewing any form of forward guidance makes it extremely difficult for the markets to form a coherent analysis of Fed policy, MainSky Asset Management's Eckhard Schulte says in a note. "Markets will have to get used to this style of communication; the resulting high level of uncertainty acts as a drag on equities and long-term bonds, as well as the U.S. dollar," the chairman of the asset manager's board says. Warsh left no doubt that the Fed is serious about its 2% inflation target and intends to deliver on it. But he didn't provide a coherent explanation as to why the Fed did not follow the three dissenting members who had advocated for a hike, Schulte says. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

July 30, 2026 02:09 ET (06:09 GMT)