Federal Reserve Chairman Warsh’s framework is emerging: the policy logic is similar to Greenspan’s and abandons the neutral interest rate

PANews reported on September 25 that Federal Reserve Chairman Warsh is accustomed to measuring his tenure in days. On his 127th day in charge of the Federal Reserve, the outlines of system restructuring have already emerged. He quickly adjusted the press conference mechanism after the interest rate meeting, not only greatly shortening the length of the press conference, but also rearranging reporters' questions in English alphabetical order by news organizations.

Analysts believe that these seemingly formal adjustments actually reflect Warsh's complete break with his predecessors in terms of monetary policy thinking and communication methods. At a press conference on September 16, he directly rejected the traditional neutral interest rate analysis framework, making it clear that the concept was only "academically useful" and had no guiding significance for the Fed's decision to raise interest rates.