Bloomberg Surveillance · Friday, July 31, 2026
Greg Daco criticized Federal Reserve Chair Warsh for communication inconsistencies, stating that penalizing the market for perceived inconsistencies is a risk. Daco highlighted that stating inflation is a choice but not acting on it, promising commitment to the 2% target then discussing moving goalposts, erodes credibility.
“Markets are penalizing right now is essentially the inconsistencies having a new FED chair that's criticizing the old FED. But not doing much about it.”
“Seeing that inflation is a choice, but not doing much about it, that's a risk. Talking about resolute commitment to the two percent inflation target and then delivering actual thinking again an issue. And then finally saying that you're going to deliver on the two percent target, but then talking about moving the goalpost at the next strategy review is another inconsistency. And those are the real issues, not so much whether you tighten or not in September.”