[Next Week's Federal Reserve Meeting May Usher in a "Major Adjustment" to Communication Mechanisms, Market Pricing Logic Faces Restructuring] BlockBeats News, June 12: Pacific Investment Management Company (Pimco) has pointed out that the upcoming Federal Reserve meeting is not only about interest rate decisions but may also signify a shift in the policy communication framework. The new chair, Kevin Warsh, may reduce forward guidance and de-emphasize the "dot plot," potentially forcing the market to independently assess the interest rate trajectory. Richard Clarida, former Federal Reserve Vice Chair and current Global Economic Advisor at Pimco, stated that investors are still adapting to Warsh's communication style, and his policy philosophy may gradually manifest in tighter information disclosure. During his confirmation hearings, Warsh explicitly stated that he "does not believe in forward guidance," leading the market to anticipate that the Federal Reserve might shorten its statements, reduce reliance on the dot plot, and even lower the frequency of communications. Pimco Chief Investment Officer Daniel Ivascyn believes that reduced communication could increase market volatility but also create opportunities for active investment. He noted that at the current interest rate levels, tools like the dot plot have significantly diminished in reference value, and the market has developed stronger independent pricing capabilities. Ivascyn also emphasized that balance sheet adjustments will have a more substantial impact than changes in communication methods. The Federal Reserve's balance sheet currently stands at approximately $6.7 trillion. If balance sheet reduction is adjusted in tandem with the interest rate path, it could have a significant impact on the structure of the yield curve. Market participants have noted that against the backdrop of high uncertainty in inflation and growth, if the Federal Reserve further weakens forward guidance, it could decouple short-term interest rates from long-term yields, increasing the complexity of global asset pricing. [Original Link]