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central bank chief, is reluctant to signal where interest rates are heading.
The approach is being characterized as a quiet revolution at the Federal Reserve, and it lands directly on the desks of hedge funds that have built rate-path positioning around central bank communications.
What Warsh is walking away from Forward guidance has functioned as a pricing mechanism for macro funds.
When a Fed chair signals the direction of rates in advance, buy-side managers position ahead of the decision rather than react to it. That process has been a structural input into rate-path strategies for years.
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