BlueBay Chief Investment Officer Mark Dowding said in a report that if Fed Chair Warsh abandons forward guidance, it could increase the risk of the market losing confidence in the Fed. Dowding stated: "During the era when previous Fed chairs implemented forward guidance, the institution enjoyed a high degree of trust and credibility." However, if an information vacuum emerges, market doubts may intensify, and trust in the Fed could begin to waver. He pointed out that current U.S. debt levels have reached record highs and are growing at an alarming rate. If a laissez-faire approach is taken toward market trends, a sudden loss of market confidence could sow enormous risks. (Jin Shi)
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