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New Federal Reserve chair Kevin Warsh declined to signal whether the central bank will raise interest rates in July, while restating his opposition to "forward guidance" — the practice of telegraphing future policy moves to financial markets.
The stance leaves investors without the pre-announcement roadmap they have grown accustomed to under previous Fed leadership.
What Forward Guidance Actually Is Forward guidance is a communication tool in which a central bank tells markets, in advance, which direction interest rates are likely to move.
Think of it as a weather forecast for borrowing costs: businesses price loans, bonds, and investment plans partly on what the Fed signals it intends to do next.
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