I get the case for ditching forward guidance off the ZLB, but he also dodged every question on his reaction function and seems to be using task forces as a way of delaying tough decisions. Won’t markets still try to price the new Fed reaction function after each data release, but with more volatility now that it’s not made public?
Warsh sure was quick to turn on Trump. That must sting. Interesting.
I hope he rewards your optimism. It seems inconsistent to claim an end to forward guidance while issuing a SEP with dot plot.
I get the case for ditching forward guidance off the ZLB, but he also dodged every question on his reaction function and seems to be using task forces as a way of delaying tough decisions. Won’t markets still try to price the new Fed reaction function after each data release, but with more volatility now that it’s not made public?