One Analyst Says The Fed Put Is Officially Dead

He says yesterday’s Fed decision and presser marked the most significant shift in Federal Reserve strategy in more than two decades.

One of my favorite analysts on the street, Gordon Johnson of GLJ Research, published a new note this morning arguing that Kevin Warsh's first FOMC meeting marks a fundamental shift in how the Federal Reserve conducts monetary policy.

Though I’m not sure I agree completely with Gordon, his perspective is definitely worth reading, and so I wanted to pass along the key points to my subscribers.

Johnson argues that yesterday’s Fed decision and presser marked the most significant shift in Federal Reserve strategy in more than two decades.

Rather than focusing on the decision to leave the federal funds rate unchanged at 3.50%–3.75%, Johnson believes investors should focus on why Warsh was comfortable holding rates.