Wosh: The Federal Reserve should gradually reduce providing forward guidance

Gold Financial reports that on April 21, Fed Chair nominee Wosh believes that the Federal Reserve should reduce reliance on forward guidance and warns that excessive transparency may hinder policy flexibility when circumstances change. He said: “The Federal Reserve reveals to the whole world… how their forecast results will be,” but “the Fed insists on forecasting for too long,” a phenomenon related to the delayed response of the Fed to inflation spikes during the pandemic from 2021 to 2022. In his view, reducing commitments will help achieve more flexible decision-making because “if the Fed waits until a meeting to make a decision, this gradual assessment process can avoid the central bank constantly making mistakes.” He sees this as part of a broader reform agenda and added: “I think these changes are very necessary, and if confirmed, I look forward to implementing them.”