Peterson Institute's Posen: It's fine for the Fed not to give forward guidance, but a forecast is critical

Peterson Institute's Posen: It's fine for the Fed not to give forward guidance, but a forecast is critical — Live Feedhttps://www.live-feeds.com/feed/peterson-institute-s-posen-it-s-fine-for-the-fed-not-to-give-forward-guidance-but-a-forecast-is-criticalContinuously updated, source-cited coverage. Posen Argues Fed Forecasts Are Critical Despite Shift Away From Forward Guidancehttps://www.live-feeds.com/feed/peterson-institute-s-posen-it-s-fine-for-the-fed-not-to-give-forward-guidance-but-a-forecast-is-criticalhttps://www.live-feeds.com/feed/peterson-institute-s-posen-it-s-fine-for-the-fed-not-to-give-forward-guidance-but-a-forecast-is-critical#u53345Tue, 01 Sep 2026 01:10:06 +0000The Federal Reserve is signaling a reduction in forward guidance, a move that creates uncertainty for equity valuations and market stability amid persistent inflation. While Posen of the Peterson Institute suggests the Fed can move away from forward guidance, he maintains that providing a clear forecast remains critical. Other critics argue that current Fedspeak is failing to help markets, while some observers note that Kevin Warsh is challenging guidance models by reviving the Hall of Mirrors concept to advocate for a quieter central bank.Why it mattersForward guidance is the tool the Fed use