Warsh is not silencing the Fed, he’s making it speak with one voice
Without the dot plot, markets would rely more on the chair's words to assess the path of rates – although only at the short-end, argues Marcello Minenna
At his confirmation hearing in April, Kevin Warsh told senators he did not believe in forward guidance. At his first meeting as chair of the US Federal Reserve, on June 17, forward guidance vanished from the statement and Warsh declined to submit a rate projection of his own: his colleagues, he said, fill in theirs with pencils and big erasers. A communications task force will report its findings by the end of the year, and it would be a surprise if the dot plot, the Fed’s most powerful piece of
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