For over three decades, the US Federal Reserve has moved towards greater transparency, introducing new ways of communicating its outlook to markets. Weeks into his tenure, Fed Chair Kevin Warsh is reversing that trend. He scrapped forward guidance and opted out of the dot plot, arguing that markets have become overly focused on interpreting Fed signals.

In this episode of The Flip Side, Brad Rogoff, Global Head of Research, and Ajay Rajadhyaksha, Global Chairman of Research, debate whether markets have become too reliant on central bank communication and what may happen without it. They explore the evolution of Fed transparency, the risk of market volatility if the Fed goes quiet, and whether investors may ultimately benefit from being forced to focus more closely on economic fundamentals.

The discussion also considers the current macro backdrop and whether a period of inflation uncertainty, oil shocks and market repricing is the right moment for the Fed to take a different approach.

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