Summary:

• New Fed Chairman Warsh deliverd a clear-cut hawkish performance at his first FOMC press conference. Warsh reminded us that inflation has been above target for more than five years while stressing the primacy of the two percent target;

• Warsh made the July FOMC a live meeting. He described inflation as the biggest problem. He sees the labor market as likely strengthening. And financial conditions are easy outside of housing. There's no reason to wait until September or later this year to hike;

• With much fanfare, Warsh announced a complete overhaul of the Fed's way of doing monetary policy. The outcome of the review could come later this year. Which he could use as fig-leaf cover to drag his feet on rate hikes.

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