Academy Securities strategist Peter Tchir says markets are overfocused on
whether Warsh will change his reaction function; a bigger risk is which data the
Fed chooses to monitor. Rather than rewriting its policy rule, the Fed could
reweight inputs—adding real‑time inflation measures, rental inflation, producer
prices and other high‑frequency indicators alongside or instead of headline PCE.
That would alter trading frameworks: policy moves could stem from the Fed
looking at a different dataset, not merely from different interpretations of the
same data, elevating some high‑frequency inflation signals to primary policy
relevance.
