Kevin Warsh said at a press briefing that expanded Fed forward guidance can be
prudent in financial crises (e.g., 2008–09) but should be reexamined in steadier
economic environments. "Markets, market participants and reporters have learned
to fully extract and interpret all of this information. Therefore, I think
reducing reliance on forward guidance requires a transition period." He said
that if officials observe a stable labor market alongside rising underlying
inflation pressures, they will naturally lean toward tightening monetary policy.
