Kevin Warsh's changes to Fed communications could lead to more bond market volatility: Mark Zandi

• Fed Chair Warsh's communication is described as 'parsimonious,' with a reduction in forward guidance and potential elimination of the dot plot.
• Less transparency from the Fed is expected to increase interest-rate volatility, which Zandi views as negative for the bond market and broader economy.
• Warsh's hawkish stance on price stability is seen as a positive sign, indicating the Fed's independence from political influence.

Mark Zandi of Moody's Analytics expresses concern over Fed Chair Kevin Warsh's move towards less transparency in Fed communications, including the potential reduction of forward guidance and the dot plot. He believes this will increase bond market volatility, which is detrimental to the broader economy. However, Zandi finds Warsh's hawkish tone on price stability encouraging, as it signals the Fed's independence.