Fed's Warsh seeks to avoid forward guidance. His colleagues aren't listening

Federal Reserve Chair Kevin Warsh has tried to shift the central bank away from forecasting its policy decisions during his brief tenure. Despite this, after the Fed raised interest rates earlier in the month, several officials have signaled that further hikes are likely. Warsh has indicated that if the economy follows his forecast, future policy moves will align with that outlook. The article discusses how these signals contrast with the chair’s broader approach to policy guidance.

Federal Reserve Chair Kevin Warsh has sought to move the central bank away from forecasting its policy decisions during his four-plus months in charge. But after the Fed raised interest rates earlier this month, multiple officials have indicated future hikes are coming. “If the economy evolves in a manner broadly consistent with my forecast, one...