Kevin Warsh was in the spotlight Wednesday for his first public remarks since his debut press conference as Federal Reserve chairman on June 17, but it was European Central Bank President Christine Lagarde who set the tone.
“We decided to give up on forward guidance,” Lagarde said during a panel discussion at the ECB’s annual forum in Sintra, Portugal, joined onstage by Warsh and the respective heads of the Bank of England and the Bank of Canada, Andrew Bailey and Tiff Macklem.
Lagarde added that the ECB has instead adopted “framework guidance,” saying it prefers to explain the calculus that goes into monetary decisions but eschews restrictive forecasts.
“I couldn’t have said it better myself,” Warsh remarked moments later.
The newly minted...