Fed Chair Kevin Warsh reiterated opposition to using forward guidance, noting the Fed issued a condensed policy statement removing forward guidance after he took office. He said forward guidance can constrain the central bank’s flexibility to react to new economic developments and discouraged its use, at least in the current environment.

2026-08-28

Fed Chair Kevin Warsh reiterated opposition to using forward guidance, noting the Fed issued a condensed policy statement removing forward guidance after he took office. He said forward guidance can constrain the central bank’s flexibility to react to new economic developments and discouraged its use, at least in the current environment.