A week ago, it looked as though Fed Chair Warsh's hawkish comments would fall on deaf ears. But two inflation reports have since reshaped bond market pricing heading into tomorrow's FOMC meeting. With economic data and corporate profits still strong, Wall Street economists remain broadly upbeat. Still, historical precedent suggests traders may want to get more proactive rather than stay as complacent as derivatives markets currently imply. It's worth revisiting some historical examples and rethinking Warsh's own communication style. Importantly, traders can still prepare ahead of this meeting so that, unlike many other investors, they don't get caught offside.

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