Warsh Wants Fed Regime Change. Here’s How to Start: Bill Dudley

Kevin Warsh, the US president’s nominee to chair the Federal Reserve, has called for “regime change” at the world’s most powerful central bank.

He should start by following the example of Europe: Help markets understand how the central bank will respond to future events, rather than merely what it’s thinking at the moment.

Warsh has argued that the Fed’s communications take transparency too far: Officials’ frequent comments on the economic outlook and the implications for interest rates, along with the quarterly Summary of Economic Projections, provide a lot of conflicting information but little insight into how the central bank conducts ...