Trump Has Called Warsh Repeatedly Since He Became Fed Chair

The distance between institutions is observable. Institutional credibility isn’t built by avoiding communication altogether. It’s built when communication exists without altering policy decisions. Throughout history, presidents and central bank chairs have communicated in different ways. Markets usually don’t react to a single meeting or phone call. What they ultimately price is whether repeated interaction changes expectations about future policy independence. Even if policy remains unchanged today, perception itself can become a variable. Long-duration assets often respond to changes in institutional credibility before policy rates move. If investors begin assigning even a small probability that institutional independence is becoming less credible, would that show up first in the long end of the Treasury curve rather than in Fed pricing itself? Curious how others think about the transmission mechanism here. https://www.wsj.com/politics/policy/trump-has-called-warsh-repeatedly-since-he-became-fed-chair-32804cf7?st=fLAaGQ&reflink=desktopwebshare\_permalink