The Fed left interest rates unchanged and signaled a hands-off, let-the-market-do-the-work approach, which markets took badly — stocks sold off into the close.

• New Fed chair Kevin Warsh won't guide markets or hint at future moves the way Jerome Powell did, and investors hated the lack of hand-holding.
• His view: the bond market has already done the Fed's job, pushing borrowing costs up by the equivalent of two rate hikes because of the Iran conflict and higher oil prices.
• So the Fed sees no need to act now and wants to wait and see if those higher costs cool inflation on their own.
• The risk: a hands-off Fed could make a downturn worse if job losses hit, and weekly jobs data is already starting to weaken.
• Gold is expected to keep falling since Warsh won't run the money printer, and the odds of a September rate hike dropped even as stocks fell.

Outlook: Expect a possible short-term bounce next week after earnings settle, but higher bond yields and a softening job market keep the medium-term picture shaky.