Warsh Reiterates Opposition to Forward Guidance

TechFlow, October 29 — According to Jin10 Data, Federal Reserve Chair Warsh said again at a press conference that he opposes the Federal Reserve using what is commonly known as "forward guidance" to signal future interest rate paths and monetary policy direction to the market.

Warsh said, "Unless there is an emergency or a crisis, I do not endorse forward guidance." He added that during the darkest days of the 2008 financial crisis, forward guidance played a significant role, drawing partly on the research and views of a scholar who had just received the Nobel Prize.

But he emphasized that in normal, everyday periods, especially when current economic fundamentals are strong, he does not endorse or support the use of forward guidance.

Source: TechFlow