Forward Guidance: R.I.P
Fed Chair Kevin Warsh used his first major public appearance, a panel at the ECB's annual forum in Portugal, to formally bury one of the Fed's most relied-upon tools of the last 25 years: forward guidance. Warsh could not be more direct about his opinion of forward guidance. To wit, when the moderator repeatedly pressed for guidance on how the Fed may adjust monetary policy, Warsh rebutted: "You're back to forward guidance. I'm going to disabuse you of trying to extract that. No forward guidance, no forward guidance." Interestingly, he was not alone. ECB President Christine Lagarde, Bank of…
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