The Federal Reserve typically telegraphs its interest rate moves in advance, then follows through. This week will provide the clearest evidence yet on whether chairman Kevin Warsh is ending the era of the no-surprises Fed.The big picture: Markets are now putting meaningful odds on the Fed delivering an interest rate hike at the conclusion of its two-day meeting this week.If the Federal Open Market Committee were to do so, it would suggest a new era in which the central bank is less predictable — accepting more volatility and surprise as the price to be paid for greater policy nimbleness.State of play: In the final public communications before the Fed entered its pre-meeting blackout period, signs were pointing to the FOMC leaving rates unchanged at this meeting, but holding out the possibility of a future rate hike if inflation doesn't move down.Since then, there has been a re-escalation of hostilities in the Persian Gulf that sent oil prices and longer-term bond yields upward.That led traders to put greater weight on the possibility of a rate hike — currently about 34% in the CME's FedWatch tool, up from 16% a week ago.Zoom out: Warsh often speaks of not pre-judging the outcome of policy meetings and of officials going in with an open mind and having a "family fight" decide optimal policy.That would imply a wider aperture of potential moves (or non-moves) than has been the norm under his immediate predecessors.Yes, but: The flip side of greater agility in policy is that there is more risk of appearing skittish and overly reactive to the latest headlines.If Fed officials were inclined to be a bit more patient on raising rates 10 days ago, should a $10 move in the price of crude oil (much of which has already reversed itself) really shake those plans?Warsh will face pressure in a post-meeting news conference Wednesday to explain either a move or non-move more clearly than he has been inclined to do in his public comments to date.What they're saying: "Since markets have priced in about a one-third chance at this meeting, there will be some surprise no matter what the FOMC does," Bill English, a former top Fed economist, tells Axios."They should do the right thing, given the information they have," adds English, now a professor at the Yale School of Management. "I don't see a problem with the Committee surprising markets at a particular meeting — that should h…
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