By raising the overnight lending rate, the Fed can affect a variety of other market rates. Warsh argues that by not providing investors with insight into future Fed policy, they'll then react to incoming economic data without being encumbered by messaging from the central bank. That market reaction will, in turn, provide Fed officials with a clearer picture of how they should adjust their policy. An increasing number of Fed officials are seeing the need for direct action. "But if you remove that, then you do have to do much more with policy rates to get the same economic reaction."