Federal Reserve Chair Kevin Warsh provided few concrete answers during his Senate testimony on Wednesday, declining to address key questions regarding the impact of artificial intelligence on inflation and the nature of his communications with President Donald Trump.
The Globe and Mail reported that Warsh sought to evade a range of inquiries from senators, leaving markets without fresh guidance on the central bank’s inflation outlook or its operational independence.
The hearing comes at a time of heightened scrutiny for the Federal Reserve.
Warsh has already broken with traditional communication protocols by announcing he will not submit an individual interest-rate projection to the upcoming Summary of Economic Projections.
This departure from the standard quarterly release has already introduced ambiguity into the market’s ability to parse the committee’s internal consensus.
Traders are likely to view the lack of clarity as a risk factor for the near-term rate path.