Warsh says 2021 forward guidance may have delayed the Fed's response to high inflation.
“I am not alone in noticing that forward guidance in 2021, to cite just one example, might well have slowed the policy response to high inflation.”
Warsh argues hardworking Americans, not financial market participants, bear the worst costs of Fed policy errors.
“If the Fed gets inflation wrong and judges the economy wrong, who gets the worst of it? Not the financial high flyers.”
Warsh says Fed forward guidance in 2021 likely slowed the policy response to high inflation.
“I am not alone in noticing that forward guidance in 2021, to cite just one example, might well have slowed the policy response to high inflation.”