The market is dropping in response to the Fed's first meeting with Kevin Warsh as Fed Chair for one key reason:
We will have far less information going forward.
During the press conference today, Fed Chair Warsh announced that the Fed has "dropped" forward guidance.
He even hinted that the "dot plot" could be changed or eliminated along with all forms of Fed communication, such as the policy statement and press conferences.
In other words, the market will now have less Fed outlook which means more uncertainty.
On top of this, the five new "task forces" established by Warsh were said to have grand objectives with minimal guidance on what to expect.
As markets have repeatedly proven, uncertainty and volatility go hand-in-hand.
The new era of Fed policy will come with more volatility.