The International Monetary Fund's chief economist on Friday said Federal Reserve Chair Kevin Warsh's plan to reduce forward rate guidance on monetary policy was "entirely appropriate," although central banks would always need to provide some long-term guidance for markets.
Pierre-Olivier Gourinchas, who leaves his post to return to academic life next week, said strong forward guidance had gotten "really bad press" because it committed central banks to some future action, regardless of economic developments.
