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Fed Chair Warsh Calls for Regime Change, Ends Guidance

5/25/2026

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Summary

Story summary

Fed Chair Kevin Warsh has vowed to pursue regime change at the Federal Reserve.
Warsh says any shift in rates or the $6.7 trillion balance sheet will require FOMC approval.
Warsh told senators Fed communications need big changes, including ending forward guidance that locks policy.
He favors trimmed-average inflation metrics—PCE up 3.5% and Dallas Fed trimmed-mean 2.4%—and says any change to the 2% target also needs an FOMC vote.

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Story summary

Fed Chair Kevin Warsh has vowed to pursue regime change at the Federal Reserve.
Warsh says any shift in rates or the $6.7 trillion balance sheet will require FOMC approval.
Warsh told senators Fed communications need big changes, including ending forward guidance that locks policy.
He favors trimmed-average inflation metrics—PCE up 3.5% and Dallas Fed trimmed-mean 2.4%—and says any change to the 2% target also needs an FOMC vote.