James Lavish: Fed chair Warsh calls for limits on central bank forward guidance - Traders Union
James Lavish: Fed chair Warsh calls for limits on central bank forward guidance - Traders Union
Source: Traders Union
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DW NOTE
Kevin Warsh spent 2008 defending the Fed's emergency interventions, then spent the next decade arguing they'd gone too far. Now he wants to strip away forward guidance — the one tool that let markets price risk before the next crisis hit. Central banks that refuse to signal policy direction don't produce stability; they produce the volatility Warsh claims to oppose.