Why no one knows what to expect from the Fed decision today

Warsh has argued that markets should play a larger role in assessing the US economy and shaping financial conditions. Here are two key takeaways from the Fed’s latest decision that turned out to be “all bark, no hike.” Since 2000, Fed officials, including the Fed’s head, have dropped hints through public comments on what they’ll be deciding, a practice known as “forward guidance.” Fed officials are also assessing how the rapid adoption of AI could affect inflation. The Fed’s rate decisions are geared for the demand-side of the economy only.