Warsh is talking like a hawk. But he might not be ready to deliver a rate hike

WHEN Kevin Warsh took the US Federal Reserve’s chair in May, he promised a return to an older style of central banking: fewer speeches, less hand-holding and more “constructive ambiguity”.

Nearly five months later, as the Fed heads into its Sep 15 to 16 meeting, that vagueness has become the central story of American monetary policy. And the smart money is finally starting to bet on which way he’ll break.

At Jackson Hole last month, Warsh delivered the most consequential seven minutes of his young chairmanship. He didn’t announce a rate hike. He didn’t even hint at one.