Forward Guidance · Monday, June 29, 2026
Bob Sheehan of Lighthouse Macro discusses the Federal Reserve's messaging shift, moving away from the "Fed put" a market assumption that the Fed would intervene during market downturns. He believes this change is significant and should alter how investors view Fed policy.
“the fed put is essentially the market's assumption that if risk assets fall hard enough the fed's going to step in, right? People were like, don't worry, the fed's coming in. Every time there's a big sell off, don't worry, buy, buy, buy the sell off.”
“And I think Worsh has very much tried to signal that that's that's gone. That's not going to be back.”
“I think the degree that he's removed it is meaningful and I think it's something that should change the way investors perceive kind of fed policy.”