Warsh's Retreat from Forward Guidance Could Spur Market Volatility -- Market Talk

0236 GMT - Fed Chair Kevin Warsh's retreat from providing forward guidance gives the central bank more policy flexibility, but leaves investors with less clarity on the policy path ahead, says James Ooi, a market strategist at Tiger Brokers. "That uncertainty could translate into higher market volatility," he says in a note. September rate-hike expectations implied by futures markets are more a reflection of investor sentiment than a definitive forecast of how the FOMC will ultimately vote, he says. With AI-related companies relying on debt and equity financing to finance infrastructure build-out, high interest rates may weigh on their valuations. It would also raise financing costs, potentially slowing the pace of AI investment and weighing on broader economic growth, he adds. (monica.gupta@wsj.com)

(END) Dow Jones Newswires

July 29, 2026 22:36 ET (02:36 GMT)