Fed Chair Warsh Ends Forward Guidance in First Jackson Hole Address

Fed Chair Kevin Warsh declared an end to "forward guidance" — the post-2008 practice of signaling the likely future path of interest rates — at Jackson Hole on August 28, saying it "has overstayed its welcome." Markets must now price each policy meeting on incoming data rather than communicated trajectories. The shift coincides with inflation at 3.4% in July and three FOMC members dissenting for a rate hike.