Federal Reserve Chair Kevin Warsh reiterated he will not provide forward
guidance on upcoming interest-rate policy, calling the move a major shift. He
said the Fed will "open a new path" and expects a full "internal debate" at the
policy meeting in four weeks. Last month Warsh said policymakers agreed forward
guidance is not suitable for the current policy environment. In June he
established five special working groups — one to study communications — with the
others focused on the balance sheet, use of data, productivity and employment,
and the Fed's inflation framework.
