Fed Chair nominee Warsh calls for 'completely new inflation framework'

Federal Reserve Chairman nominee Kevin Warsh testified before a Senate committee on April 21, stating he would push for a comprehensive overhaul of policymaking if confirmed. Warsh said the central bank needs fundamental policy reform, emphasizing that mistakes made in responding to inflation during the COVID-19 pandemic necessitate such changes. He described this as requiring a shift in policy execution and a completely new inflation framework. Warsh called for new policy tools and communication methods, specifically mentioning forward guidance, economic projections, and the dot plot. He also argued that the Fed should delay releasing its statements until the time of its meetings, asserting that forecasts can interfere with decision-making.