Wall Street analysts are ‘unnerved’ by the Fed’s new chair, Kevin Warsh. Here’s why

The Fed chair is under pressure to clarify his views on inflation and interest rates.

The new chair of the Federal Reserve, Kevin Warsh, has brought sharp change in how the central bank communicates by saying much less than his predecessors about the economy and inflation.

But so far, many economists and Wall Street investors haven’t been thrilled with that approach.

On Friday, Warsh has a high-stakes opportunity to address those concerns and underscore his inflation-fighting bona fides when he gives his speech in Jackson Hole, Wyoming, during the Fed’s annual economic symposium.

What many economists and Wall Street analysts are hoping for is a clear signal on how he thinks the Fed should handle the stubbornly elevated inflation that has caused pervasive gloom among many consumers. At his last press conference, he sowed confusion by ducking repeated questions on whether the Fed would hike its benchmark interest rate if inflation stays high.

Warsh has said he doesn’t want to provide what analysts call “forward guidance” about whether the Fed will hike or cut rates or stay on hold at upcoming meetings. He argues that it limits the Fed’s flexibility by committing it to a specific policy. He also thinks financial markets have become too dependent on such guidance.