Article
Forward Guidance Is Gone
Forward Guidance Is Gone
By Philip Marey, senior US strategist at Rabobank
Summary
As widely expected, the FOMC kept the target range for the federal funds rate unchanged and dropped its easing bias. However, this unanimous decision was announced in an unusually short statement.
What’s more, at his first press conference as Fed Chair Kevin Warsh terminated forward guidance.
However, the Summary of Economic Projections had already revealed that half of the FOMC participants (who submitted a forecast) expected to hike before the end of the year. Warsh did not submit his...
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