Quoth the Raven
· QTR’s Fringe Finance
· July 31, 2026 at 07:01
· ⏱ 1 min read
| Read on Substack ↗
Summary
According to Gordon Johnson of GLJ Research, the Federal Reserve's decision to hold rates at 3.50%–3.75% in Kevin Warsh's first FOMC meeting signals that the 'Fed put' is dead and marks a major regime shift in monetary policy. Markets should expect less central-bank support during equity drawdowns, which may increase volatility and force investors to rely more on fundamentals.
•Gordon Johnson of GLJ Research argues Kevin Warsh's first FOMC meeting marks the most significant shift in Federal Reserve strategy in more than two decades.
•The FOMC left the federal funds rate unchanged at 3.50%–3.75%.
•Johnson says investors should focus on why Warsh was comfortable holding rates rather than the rate decision itself, because it implies the Fed is no longer willing to backstop markets.
•The article frames the 'Fed put' as 'officially dead,' suggesting a structural change in how the Fed will respond to future market stress.