Fed's Warsh Says He Doesn't Think Submitting Dots Is Helpful

• Warsh expresses skepticism about explicit forward guidance and notes its removal from the statement.
• He clarifies that the 'dot plot' forecasts are highly flexible and represent 'more likely than other scenarios' rather than 'more likely than not' outcomes.
• A broad review of the Fed's communication tools, including press conferences and the dot plot, is planned for year-end.
• The primary goal of monetary policy remains price stability, with unanimous agreement among colleagues.

Federal Reserve Chair Kevin Warsh discusses the Fed's approach to forward guidance and the 'dot plot'. He emphasizes that FOMC members' forecasts are flexible and not firm commitments, likening them to 'pencils with big erasers'. He also indicates an upcoming review of the Fed's communication strategies, including the dot plot, by year-end.