#WarshPushesToScaleBackForwardGuidance - WHY A QUIETER FED MEANS WILDER CRYPTO?
Fed Chair Kevin Warsh wants a QUIETER Fed. And that is making the market LOUD. 📢
What's Happening?
Warsh is pushing to KILL forward guidance - that habit of the Fed telling us where rates are headed.
His plan:
· Strip rate hints from FOMC statements
· Scrap the quarterly dot plot (rate-path projections)
· Force markets to watch DATA, not Fed speeches
He said: "Don't call it forward guidance."
But his own colleagues are NOT quiet. 40+ speeches since September's hike, all trying to calm the market after CPI came HOT.
CPI Update: 3.7% YoY - Market is divided
October rate hike is now a coin toss. 50/50.
Why This Matters For $BTC & Crypto?
For 15 years, the Fed guided the market. Volatility was low because we knew what was coming.
Now? No guidance = More volatility.
As Reuters reports: If the Fed stops supplying forecasts, the market has to build its own. And it will charge a premium for uncertainty. That's why 10Y Yield is above 5.3%.
Translation for us:
· Every CPI, every jobs data = Bigger pump or dump
· $BTC -3.24%, $ETH -5.57% today is just a taste
· No more free ride from Fed promises
Warsh will speak in Bangkok on Friday - that will be the final clue before the Fed decision in less than 2 weeks.
Do you want a quiet Fed that lets data speak, or a loud Fed that tells you what to do?
I say: Less talk, more data = More opportunity for traders who are ready.
#WarshPushesToScaleBackForwardGuidanceAndDotPlot #Fed #FOMC #cpiwatch
Fed Chair Kevin Warsh wants a QUIETER Fed. And that is making the market LOUD. 📢
What's Happening?
Warsh is pushing to KILL forward guidance - that habit of the Fed telling us where rates are headed.
His plan:
· Strip rate hints from FOMC statements
· Scrap the quarterly dot plot (rate-path projections)
· Force markets to watch DATA, not Fed speeches
He said: "Don't call it forward guidance."
But his own colleagues are NOT quiet. 40+ speeches since September's hike, all trying to calm the market after CPI came HOT.
CPI Update: 3.7% YoY - Market is divided
October rate hike is now a coin toss. 50/50.
Why This Matters For $BTC & Crypto?
For 15 years, the Fed guided the market. Volatility was low because we knew what was coming.
Now? No guidance = More volatility.
As Reuters reports: If the Fed stops supplying forecasts, the market has to build its own. And it will charge a premium for uncertainty. That's why 10Y Yield is above 5.3%.
Translation for us:
· Every CPI, every jobs data = Bigger pump or dump
· $BTC -3.24%, $ETH -5.57% today is just a taste
· No more free ride from Fed promises
Warsh will speak in Bangkok on Friday - that will be the final clue before the Fed decision in less than 2 weeks.
Do you want a quiet Fed that lets data speak, or a loud Fed that tells you what to do?
I say: Less talk, more data = More opportunity for traders who are ready.
#WarshPushesToScaleBackForwardGuidanceAndDotPlot #Fed #FOMC #cpiwatch