Central bankers pretty much agree that forward guidance, at least as it was commonly understood, is no longer possessed of any meaningful utility.Such guidance can create a damaging facade of certainty that bears no relation to unfolding reality. In so doing, forward guidance can amplify volatility in markets rather than acting as an anchoring mechanism.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
Warsh can’t leave the Fed (and markets) in an information vacuum
In abandoning forward guidance, it is incumbent upon central banks to redouble their efforts at communication and transparency.
76 words~1 min read
