New Fed Chair Kevin Warsh reduces transparency, risking market volatility and higher rates

Warsh, like many economists, thinks the financial markets have become too dependent on Fed guidance, and that such direction is more effective in financial crises or economic downturns.

The Federal Reserve has for decades moved steadily from a remote, opaque government agency that shared little about what it did or why to a more transparent institution willing to explain how it makes decisions and what it thinks about the economy.

But in his first press conference Wednesday, new chair Kevin Warsh began to reverse some of those steps.