Kevin Warsh will take the podium for the second time ever as Fed Chairman on Wednesday, after the Fed’s policy-setting meeting concludes. Thus far, the chairman has stated and re-stated his commitment to getting inflation under control, but what that means is still a little unclear, in large part because he’s decided to forgo forward guidance.
And, according to Claudia Sahm, chief economist at New Century Advisors, that’s not the only thing he seems to be avoiding in his statements.
“Unfortunately, Kevin Warsh has seemed to lump that taking away forward guidance into taking away the reaction function,” said Sahm. “What is really helpful is to know, what are the contingency plans? What would it take for the Fed to raise rates? What data are you looking at? How are you evaluated? What's your timescale?”
Sahm spoke to “Marketplace” host Kai Ryssdal ahead of Chair Warsh’s post-meeting press conference.
To listen to their conversation, use the media player above.
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