The Federal Reserve held rates steady at its Wednesday meeting, but the real story was Chair Kevin Warsh’s move to overhaul how monetary policy is communicated. By shortening the policy statement and dropping forward guidance, Warsh signaled a shift toward a data‑first approach that could leave markets with less advance warning on future rate moves.

Why Warsh Dropped Forward Guidance

The Federal Open Market Committee’s unanimous statement holding rates steady was shorter than usual — about one‑third the length of April’s statement. Most notably, it omitted forward guidance, which typically outlines how policymakers expect rates to move. Although policymakers released their usual Summary of Economic Projections, Warsh chose not to provide projections of his own.

Warsh also established five........

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