Top Central Bankers Say Forward Guidance Will Stay as a Policy Tool
- Draghi, Yellen, Carney, Kuroda support hinting at intentions
- Fed chair says monetary guidance must always be conditional
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More transparent communication on monetary policy intentions is effective and probably here to stay, according to four of the world’s most-powerful central bankers.
At a debate on communication in Frankfurt on Tuesday, officials charged with supporting half the world’s economy -- including U.S. Federal Reserve Chair Janet Yellen -- were in general agreement on the use of so-called forward guidance as a policy tool, though with the acceptance that it has its limits.