Warsh: The Fed needs a completely new inflation framework

Federal Reserve Chair nominee Warsh stated that if appointed and appointed to lead the Fed, he will push for comprehensive policy reforms. Warsh told a Senate committee, "In my view, the Fed needs fundamental policy reform. The missteps in dealing with inflation during the COVID-19 pandemic demand such reforms, and I think that means a shift in how policy is implemented. I think that means a different, entirely new inflation framework." Warsh stated that we need new tools, we need new ways of communicating, mentioning forward guidance, economic projections, and the dot plot. He said the Fed should wait until its meetings to issue statements because projections can hinder decision-making. (Jinshi)