Markets are focused on Fed Chair Kevin Warsh’s upcoming press conference. Some economists expect a "hawkish pause." Former Fed Vice Chair Alan Blinder said the moment highlights why "forward guidance" matters: the hawkish element of a pause can only be conveyed through communication rather than simply holding rates. Blinder added the Fed faces a dilemma—both holding rates and hiking can be plausibly defended—and said Warsh has partly created that dilemma by previously downplaying the role of for

Markets are focused on Fed Chair Kevin Warsh’s upcoming press conference. Some economists expect a "hawkish pause." Former Fed Vice Chair Alan Blinder said the moment highlights why "forward guidance" matters: the hawkish element of a pause can only be conveyed through communication rather than simply holding rates. Blinder added the Fed faces a dilemma—both holding rates and hiking can be plausibly defended—and said Warsh has partly created that dilemma by previously downplaying the role of forward guidance.