Kevin Warsh's Federal Reserve Just Issued an 11-Word Warning to Wall Street. Here's What History Says Comes Next.

Last month, the Federal Reserve wrapped its first meeting with Jerome Powell's replacement, Kevin Warsh, at its head. The target rate remained unchanged at 3.5% to 3.75%, and the minutes, released a few weeks after the meeting, mostly read the way Federal Reserve minutes always do -- very dry.

But within them was an 11-word warning that investors should pay attention to now. Years of above-target inflation "could begin to affect inflation expectations and wage- and price-setting decisions." That may be dry central-banker language, but it could have major ramifications for the S&P 500 (SNPINDEX: ^GSPC).

Here's how.

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