Forward guidance is out. Task forces are in.
The Federal Reserve under Kevin Warsh's one-month leadership as Chair isn't providing the highly anticipated lower interest rates that consumers, businesses and investors initially expected earlier this year to cut short-term borrowing costs.
It is, however, bringing an intense commitment to a "regime change'' that reflects the 56-year-old lawyer's pledge to reform the world's largest and most influential central bank with fewer words and more real-time data.
That includes the creation of not one, but five blue-ribbon task forces of "outside consultants" that will study Fed processes in an attempt to create a modern framework for monetary policy that mirrors the best practices of global financial and business leaders.
The task forces will work with Fed officials and staff to consider a full range of topics "worthy of a fresh look" and will provide recommendations by the end of the year, Warsh said.
The Federal Reserve under Kevin Warsh's one-month leadership as Chair isn't providing the highly anticipated lower interest rates that consumers, businesses and investors initially expected earlier this year to cut short-term borrowing costs.
It is, however, bringing an intense commitment to a "regime change'' that reflects the 56-year-old lawyer's pledge to reform the world's largest and most influential central bank with fewer words and more real-time data.
That includes the creation of not one, but five blue-ribbon task forces of "outside consultants" that will study Fed processes in an attempt to create a modern framework for monetary policy that mirrors the best practices of global financial and business leaders.
The task forces will work with Fed officials and staff to consider a full range of topics "worthy of a fresh look" and will provide recommendations by the end of the year, Warsh said.
2 months ago
