Warsh wants the Fed to say less. Two officials are pushing for more transparency.

The debate over how much the Federal Reserve should communicate is drawing attention as two officials push for greater transparency, even as others—including Kevin Warsh—argue the central bank should say less. The discussion comes against a backdrop of persistent inflation, with Fed officials indicating that additional interest-rate hikes may be needed to bring price pressures under control.

For markets, the substance of policy matters more than the style of communication, but the two are connected. Clearer guidance can reduce uncertainty about the path of rates, while restrained commentary may leave investors relying more on incoming data. Either approach can move rate expectations, bond yields and rate-sensitive sectors such as housing and technology.

What to watch: upcoming Fed speeches and meeting minutes for signals on the balance between transparency and restraint, and any shift in how officials frame the need for further tightening. Comments from Warsh and like-minded policymakers may offer clues about the direction of the communication debate, while inflation data will remain the primary driver of rate expectations.