Fed Chair Kevin Warsh’s Problems Go Deeper Than His Rocky Start

New Federal Reserve Chair Kevin Warsh has gotten off to a rocky start. The main problem is an unwillingness to share his thoughts about how he would adjust monetary policy to changes in the economic outlook. Getting rid of forward guidance is desirable, but outsourcing monetary policy to financial markets is not a viable strategy. If the central bank is looking to the markets for guidance and the markets are looking to the central bank for guidance, policy expectations become indeterminate and t