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What's priced in after Warsh's nomination hearing.
Yesterday, here was a 54.5% chance of a rate cut in December; now it's 39.5%.
Was it Warsh's testimony? Doubtful, as we had a strong retail sales report.
(src: BBG)

Warsh: the trajectory on inflation is improving, but there's more work to do

This may well serve as a summary of his testimony as well.

Q: did the President ask you to lower rates?
Warsh: he didn't require it, he didn't demand it.

Question goes back and forth. Warsh is pretty clear - Warsh doesn't dispute that he may have been 'asked' to lower rates - he says it's not demanded.

Q: do you commit to press conferences after each meeting?
Warsh: truth speaking to more important than repetition.
Q: would you commit to taking questions.
Warsh: at press conferences, he'll take questions.
-->> Warsh might reduce the number of press conferences -- yeah!

Warsh: when asset prices were down 60% to 70%, it was understandable (for the Fed to build the balance sheet).

Understandable?

I wish I could interject with question here - the Fed should not be in the business of managing asset prices. The answer would benefit from more

Warsh suggests he won't be storming into the Fed and "change it all"
That's both realistic and prudent - the signal to the market is important. x.com/AxelMerk/statu…

What level should the balance sheet be at?
Warsh: I haven't picked a number. The Fed should come to an agreement, it's taken 18 years to get to the balance sheet, it won't happen overnight. It should not hold long-term Treasuries. Public discussion is necessary. Reduction should