Bank of England’s Bailey praises ‘real substance’ of Fed Chair Warsh’s speech

Bank of England Governor Andrew Bailey offered a notably warm review of Federal Reserve Chair Kevin Warsh’s latest remarks, describing the speech as carrying “real substance.” The praise lands at a particularly charged moment for global monetary policy. Warsh, who took the Fed’s top seat in 2026 after succeeding Jerome Powell, has been signaling a philosophical shift in how the world’s most powerful central bank communicates with markets. A new Fed chair finds his footing Warsh is not a stranger to the Fed’s inner workings. He previously served as a Fed governor from 2006 to 2011, a tenure that spanned the worst financial crisis in generations. That experience appears to be informing his current approach, which emphasizes pulling back on the extensive forward guidance that defined the Powell era. Instead of telegraphing rate moves months in advance, Warsh has been pushing for a framework centered on “price stability” as a broader concept rather than rigid numerical targets. The speech Bailey praised was widely anticipated as Warsh’s inaugural address at the Jackson Hole symposium, the annual gathering of central bankers that has become a ritual for market-moving pronouncements. Wit...