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The tension in Kevin Warsh's latest speech is that the Fed Chairman made the case for a more restrained central bank while simultaneously naming inflation as an active concern.
Those two positions fit together only if the market is willing to treat silence on policy as a policy itself. The case for a quieter Fed is, in Warsh's framing, a philosophical one.
The era of heavy forward guidance trained markets to expect a detailed roadmap from the central bank before each decision.
Warsh appears to be arguing, at the level of institutional design, that this degree of precommitment does not serve the central bank's purpose. But the inflation concern does not sit quietly alongside that posture.
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