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Federal Reserve Chair Kevin Warsh is working to calm fraying investor sentiment even as signs of economic strain continue to build.
The complication: economists are criticizing Warsh's communication strategy, and policymakers are preparing to gather at Jackson Hole. The case for the reassurance is obvious.
A central bank chair who telegraphs concern can amplify the anxiety he is trying to contain, and measured language is itself a policy tool.
What's changed, according to the economists raising objections, is that the measured tone reads as a mismatch with the economic strain actually accumulating.
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