Much seems to be happening at US Fed under Kevin Warsh. As the most powerful central bank in the world, the entity that has the 'exorbitant privilege' of printing dollars, its actions are likely to have a ripple effect across global financial markets. It could also influence policy playbooks of other central banks, including RBI.
The core message Warsh wants to send is that Fed might not coddle the financial markets, particularly the bond markets, as much as it has done for the last few decades. Instead, traders and investors would have to rely more on their own reading of the future of the economy and set prices and interest rates accordingly.
