See How the First Fed Statement Under Warsh Evolved

Interest rates didn’t change on Wednesday, but the language in the Federal Reserve’s policy statement, which the central bank released alongside its rate decision, certainly did.The statement, which has traditionally served as a high-level glimpse of the Fed’s thinking behind its rate decisions, was notably succinct.It came in at just 132 words, compared with 341 during the Fed’s last meeting in April, which also included a list of names of voting members.The most notable omission was so-called forward guidance — a way for the Fed to communicate what it might do next.

The new Fed chairman, Kevin M.Warsh, has been a vocal critic of forward guidance, saying it boxes the rate-setting committee in and makes it harder to pivot if necessary.

April’s policy statement included a phrase that said the committee would look at “the extent and timing of additional adjustments,” which some interpreted as implying the Fed was considering future rate cuts.That phrase, which three members of the rate-setting committee objected to in April, was removed.A paragraph stating that the Fed would take into account “a wide range of information” when making its decisions was also cut, in favor of a single closing sentence: “The Committee will deliver price stability.”The suggestion that the Fed would focus on inflation in particular could be a signal that rates may remain higher for longer....