Bloomberg Surveillance · Wednesday, July 29, 2026
Claudia Sam of New Century Advisors points out that Fed Chair's communication style, characterized by "low information" and a lack of articulation of his reaction function, is contributing to market volatility, particularly in Federal Funds futures. This uncertainty is reminiscent of past major Fed decisions and raises questions about the effectiveness of current communication strategies.
“So we are seeing the Chairwash is contributing to volatility. Now where it's most clear is in the Federal Fund's futures market. So coming in yesterday there was still about a thirty percent chance of a Reid hike.”
“This time, the uncertainty that comes from a chair who has gone really low information on how he's thinking about. Policy, low information on a range of things.”
“I think one is just to ask Kevin Warsh about his own past words. When he worked on the Bank of England's communication review in twenty fourteen, he recommended that they give timely feedback on what the decision was, the rational for the decision, and he even talked about the importance of a reaction function.”