In this week’s LPL Market Signals, Chief Fixed Income Strategist Lawrence Gillum and Chief Economist Jeffrey Roach break down the first Federal Reserve meeting under new Chair Kevin Warsh, highlighting a more hawkish-than-expected stance, streamlined communication, and the introduction of new task forces focused on inflation, data, and AI. The discussion also reflects on the legacy of Alan Greenspan following his passing, noting his lasting influence on Fed policy and communication. The episode concludes with updated economic projections, including elevated inflation expectations, potential fourth-quarter disinflation, and key risks tied to geopolitics, growth, and labor markets.<br><br>Tracking: #1129177

Shock, Awe, and a Hawkish Turn: The First Warsh Fed Meeting | LPL Market Signals

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**Podcast:** Market Signals by LPL Financial

## Transcript

Hello and welcome to this week's edition of LPL Market Signals. Lawrence Gillum, Chief Fixed Income Strategist on the LPL Research Team, and I'm the host this week. Last week ushered in the beginning of the Kevin Warsh-led Fed. Warsh, who is the 17th Chair of the Federal Reserve, but only the 11th in the modern banking era, started his tenure off strong. We had some drama, some intrigue, and some surprises, which tend to be a good recipe for daytime soap operas, but not so sure about an FOMC meeting.

But to help unpack the major takeaways from last week's Fed meeting and to discuss our updated economic projections, I'm joined by LPL's Chief Economist, Dr. Jeffrey Roach. Jeff, how are you today, sir? Hey, Lawrence. Thank you. That's a very well said intro with drama, intrigue, excitement. This was certainly something that's historic, I think, and that's not hyperbole.

Absolutely. Although we do have another announcement to make in terms of a previous Fed chair. If you want to mention that, that might be appropriate today. Yeah. So unfortunately, we do have some sober news as we record this on Monday, June 22nd. The maestro, Alan Greenspan, has passed away at 100 years young. So I think for a lot of us in this industry, we started during his tenure.

So Alan Greenspan was the head of the Federal Reserve from 1987 to 2006. So if you started your career in this industry, any time between those two time periods, you are certainly familiar with Alan Greenspan. So maybe some thoughts broadly, Jeff, on Alan Greenspan.

Yeah. One of the things that I think he contributed to is this whole notion of looking at business company corporate level data and trying to square that up with the official government data. So he's very much a granular micro kind of guy. And I think that was a that was a really good thing, I think, that stuck around even to today.

He, as you know, Lawrence, from me talking about this, he very much was a part of my beginning formation as an economist. He would call my boss at Bank of America. And what it would a good legacy. He really did not without a few bumps and scrapes. Certainly. Right.

A lot of people do complain about some of his deregulation bent, his free market type of bent. And that was one of the reasons that some say might have caused the great financial crisis. But besides that, I think he he well earned that moniker Maestro.

Yeah, absolutely. I mean, when you think about the the tools, certainly Ben Bernanke, his his successor, you know, Ben Bernanke, you know, provided some additional tools. But Alan Greenspan was certainly there to increase some of the communication efforts. You know, before he started releasing statements, there was really just no idea what happened within the Federal Reserve halls or if interest rate policy changed or not.

Maybe they've gotten a little bit too far away from that, that communication style over time. So...

Shock, Awe, and a Hawkish Turn: The First Warsh Fed Meeting | LPL Market Signals

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Shock, Awe, and a Hawkish Turn: The First Warsh Fed Meeting | LPL Market Signals

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.