Federal Reserve Chair Warsh Rejects Forward Guidance and Reiterates 2% Inflation Target
Federal Reserve Chairman Kevin Warsh said the central bank will not rely on forward guidance to shape upcoming interest-rate policy, clarifying that the Fed will not outline expected future rate paths. Warsh reiterated that policymakers remain committed to returning inflation to the 2% target, stating that any inflation consistently running above that level would be disappointing. He noted that inflation risks have eased recently, though he emphasized that current prices remain too high for comfort.
Warsh emphasized that interest rate adjustments should remain the primary tool for monetary policy, reinforcing a data-dependent approach rather than pre-committing to a specific trajectory. During the remarks, he also confirmed that the Fed will continue to release its quarterly economic projections, widely referred to as "dots," for the foreseeable future. The comments signal the central bank's intent to manage policy strictly through rate moves while maintaining transparency on its long-term economic outlook.
From the sources (25 posts)
@firstsquawkFED'S WARSH: NOT GOING TO GIVE FORWARD GUIDANC
@financialjuiceFed's Chair Warsh: Not going to give forward guidance
@zerohedge*WARSH DECLINES TO OFFER GUIDANCE ON INTEREST RATES you mean he wasnt kidding when he said forward guidance is over?
@financialjuiceFed's Chair Warsh: The US not afraid of productivity-led economic growth.
@financialjuiceFed's Chair Warsh: We have to deliver both on employment and stable prices
@businessFederal Reserve Chairman Kevin Warsh repeated that he isn’t going to offer “forward guidance” with regard to upcoming interest-rate policy, marking a step-change at the US central bank
@firstsquawkWARSH SAYS HAVE TO DELIVER BOTH ON EMPLOYMENT AND STABLE PRICES
@financialjuiceFed's Chair Warsh: Labor markets are steady.
@financialjuiceFed's Chair Warsh: Supply side solid.
@deitaoneFED'S WARSH: WE'VE LOOKED AROUND AND SEE THAT PRICES ARE TOO HIGH
@financialjuiceFed's Chair Warsh: We're in the price stability business.
@firstsquawkWARSH: WE'RE IN THE PRICE STABILITY BUSINESS
@financialjuiceFed's Chair Warsh: We've looked around and see that prices are too high.
@firstsquawkWARSH: WE'VE LOOKED AROUND AND SEE THAT PRICES ARE TOO HIGH
@deitaoneFED'S WARSH: EXPECTATIONS OF INFLATION OVER THE FIRST FOUR WEEKS HAVE COME DOWN
@deitaoneFED'S WARSH: INFLATION RISKS HAVE COME DOWN
@financialjuiceFed's Warsh: Expectations of inflation over the first four weeks have come down.
@financialjuiceFed's Warsh: Inflation risks have come down.
@deitaoneFED'S WARSH: IF ANYONE THOUGHT WE'D BE HAPPY WITH INFLATION ABOVE 2%, THEY WILL BE DISAPPOINTED
@financialjuiceFed's Warsh: If anyone thought we'd be happy with inflation above 2%, they will be disappointed.
@financialjuiceFed's Chair Warsh: Tactics and strategy for price stability still to come.
@financialjuiceFed's Chair Warsh: The most important thing we can do is get policy right
@deitaoneFED'S WARSH: VOLATILITY IS DOWN, YIELDS ARE DOWN
@firstsquawkFED'S WARSH: EXPECTATIONS OF INFLATION OVER THE FIRST FOUR WEEKS HAVE COME DOWN || INFLATION RISKS HAVE COME DOWN|| IF ANYONE THOUGHT WE'D BE HAPPY WITH INFLATION ABOVE 2%, THEY WILL BE DISAPPOINTED || WE'LL BE AN INDEPENDENT CENTRAL BANK |
@financialjuiceFed's Chair Warsh: The Fed stands for staying in its lane on monetary policy.