Fed’s Warsh says central bank will stop offering forward guidance
The remarks signal a shift in how the Federal Reserve may communicate policy, with Warsh saying officials will set a new course to improve decision-making.
Fact Check
Multiple independent, credible sources confirm the core claim. The Hill (citing the official Federal Reserve press conference transcript at federalreserve.gov) reports that new Fed Chair Kevin Warsh announced the central bank will stop providing forward guidance, with the FOMC dropping it from its statement on June 17, 2026. Fortune/AP corroborate that Warsh removed all forward guidance and announced task forces to improve decision-making and communications, matching the claim that officials 'will set a new course to improve decision-making.' Global Finance also confirms the Fed scrapped forward guidance under Warsh. The claim aligns closely with these primary and secondary reports.
Summary
Federal Reserve Chair Warsh said on July 1 that the U.S. central bank will begin a “new course” and will no longer provide forward guidance, according to a Jin10-cited report carried by BlockBeats. He said, “The Federal Reserve will open a new course. We will not provide forward guidance. We will set a new direction so as to make better decisions.” The comments point to a potential change in policy communication, as forward guidance is typically used by central banks to signal the likely path of interest rates and shape market expectations.
Terms & Concepts
- forward guidance: Central bank signals on likely future policy path
- Federal Reserve: U.S. central bank that sets monetary policy