Rewriting the Fed Playbook

The Fed delivered a hawkish hold and new Chair Kevin Warsh launched a comprehensive review of the policy framework. UniCredit views the recent market pricing for rate hikes as overdone and expects rates to remain unchanged for a prolonged period.

Key Takeaways

• 1.The Fed held rates steady and removed its easing bias, signaling a 'hawkish hold' under new Chair Kevin Warsh.
• 2.Chair Warsh announced the formation of five task forces to review the Fed's monetary policy framework, creating short-term uncertainty.
• 3.UniCredit expects a prolonged period of unchanged interest rates as the Fed waits for internal committee feedback.

Table of Contents

• Rewriting the Fed playbook
• The Context
• The Data
• Our View
• Today's Data Releases

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