Kevin Warsh wants the US Fed to speak less—but has he really thought this idea through?
• Kevin Warsh, the new US Federal Reserve chair, is proposing a significant shift in communication strategy by reducing the frequency and nature of the Fed's public statements. • The plan involves eliminating "forward guidance," a practice used to signal future interest rate moves to the public and financial markets. • Critics argue that obscuring the central bank’s monetary policy reaction function could unsettle global markets and hinder the effective transmission of policy.
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