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BUSINESS
Jackson Hole: New Fed Chair Signals An Era Of No Guidance — Where He Stands Versus Powell, Yellen & Bernanke
Kevin Warsh tells Jackson Hole he is done with forward guidance even as inflation stays above target, breaking with a practice he helped build under Bernanke.
GlobeSignal-AIlow certainty
- Why it matters
- Forward guidance shapes market expectations about future interest rates; abandoning it removes a tool that has anchored financial market pricing for over a decade.
- Most affected
- Bond and equity investors — Less clarity on future Fed rate moves affects pricing and portfolio positioning.
Mortgage and loan borrowers — Uncertainty about future rate paths may affect lending rates and availability. - Likely next
- Whether the Fed maintains this no-guidance approach at its next policy meeting and how markets respond to the shift.