Key insight: After two press conferences with scant policy explanations for forward guidance, market participants and banks are questioning the credibility of the Warsh-led Federal Open Market Committee to raise rates to combat inflation. After two press conferences with scant policy explanations for forward guidance, market participants and banks are questioning the credibility of the Warsh-led Federal Open Market Committee to raise rates to combat inflation. Federal Reserve Chair Kevin Warsh said he wants to change the central bank's relationship with financial markets. The concern about the Fed falling too far behind market rates is that it could create the conditions for the Fed at some point to have to raise rates quickly to catch up, as it had to do in 2022. "The Fed is facing a growing credibility problem as the market will continue to test its resolve to deliver price stability," they wrote.