Fed's 'Hawkish Hold' Leaves Wall Street Guessing. Stocks and Bonds Could Pay the Price

Source: International Business Times

New Federal Reserve chair Kevin Warsh has decided to abandon the detailed forward guidance that characterized the Jerome Powell era and emphasize that incoming economic data will determine the central bank's next steps. Annabelle Gordon/AFP via Getty Images The Federal Reserve's decision to leave interest rates unchanged offered little comfort to investors, instead raising fresh questions about where monetary policy is headed under new Chair Kevin Warsh. While policymakers kept benchmark interest rates steady, the central bank's tougher tone and lack of forward guidance left Wall Street facing greater uncertainty over the path of inflation, borrowing costs and financial markets.