The fed used to be an enigma. Never really saying what they were thinking. This kept the market as the leader on where it was headed. The modern fed goes out of its way to tell the market what members are thinking. This puts the fed as the leader of where the economy is going. Which is better? For the stock market, the current fed method is better since it gives the market time to prepare for the change. The previous method was more dynamic and was led by what the economy did. Given that the fed's job is to protect the economy not the stock market. Warsh is right. Hopefully, his method will be better for the every man and their well being. After all what's good for the economy should be good for the market too. A win win situation.
Warsh needs to careful and make the change slowly. Otherwise I see a lot turbulence in the market which is never good.