Warsh’s changes to forward guidance were tried by one central bank — and here’s what happened

Canada's central bank ceased publishing forward guidance on future interest rate decisions in 2013 and resumed the practice in 2016. The Bank of Canada reported increased volatility in financial markets during the period without forward guidance. Peter Warsh, a member of the Federal Reserve Board, has proposed similar changes to how the Fed communicates future policy decisions. The proposal would reduce the Fed's public statements about upcoming interest rate moves.

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