Economy Talk

Not convinced ending forward guidance is a good idea

I lived through Japan's long years of central bank experiments, and one thing I learned is that clear communication was one of the few tools that actually worked. So when Warsh says forward guidance "overstayed its welcome", I am skeptical.

Markets hate surprises. Removing the signal does not remove the uncertainty, it moves it to the public. Maybe I'm old fashioned. Tell me why I'm wrong.