Warsh: No Guidance on Policy | Metals Mine

  • Warsh: No Guidance on Policy

    From srikonomics.substack.com

    Federal Reserve Chairman Kevin Warsh made his first appearance on the international stage this week at the European Central Bank’s annual symposium in Sintra, Portugal. Joining the heads of the European Central Bank, the Bank of England and the Bank of Canada on a panel moderated by CNBC’s Sara Eisen, Warsh had an opportunity to explain how the world’s most influential central bank intends to confront an inflation problem that remains far from solved. Instead, despite repeated proddings by the anchor, investors were left with more questions than answers. Warsh acknowledged the inflation problem but declined to ... (full story)

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Schultz
12 hr ago
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"Central bankers do not have to reveal every future policy decision. But markets do expect them to articulate a framework that allows households, businesses and investors to understand how incoming data will shape monetary policy. "

Warsh has made his position clear - no forward guidance. Commentators seem to be a little bit slow understanding that *this* is the framework.

Individuals will simply have to consider this (IMO, correct) stance to be another factor as they recalibrate their Bayesian calculations.
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KamoliddinX
17 hr ago
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Tramp masqaraboz
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