Powell, Jerome H. on 2018 May 25 at 09:20
Forward guidance was highly useful in the crisis... I think it will have a significantly smaller role going forward.
“Forward guidance was highly useful in the crisis,” Fed Chairman Jerome Powell said Friday, speaking on a panel at the Riksbank’s 350th anniversary conference in Stockholm. “I think it will have a significantly smaller role going forward.” “When forward guidance came around, the whole point of getting the market signal is that there’s independent content in that signal,” Powell said. “If the market’s really signaling that it understands what it thinks we’re doing, then you’ve lost the content of the signal.” Powell, Jerome H.