Warsh joins other central bankers in opposing forward guidance

US Federal Reserve Chair Kevin Warsh on Wednesday signaled inflation remains too high for his liking, but declined to offer hints on what the central bank might do later this month.

In his international debut as chair, Warsh said he found “common cause” with his European, British, and Canadian counterparts in opposing “forward guidance,” the practice in which monetary policymakers suggest where the cost of borrowing may be heading.

Warsh has argued that in times of elevated uncertainty, such signals risk boxing in the central bank, making it harder to change course. Shocks like Washington’s tariffs and the Iran war have complicated inflation forecasting, The New York Times noted, prompting central bankers to adjust their messaging.