BWC Chair Bill Dudley examines Federal Reserve Chair Kevin Warsh’s early approach to monetary policy and its implications for the Fed’s credibility. Dudley raises concerns about the lack of clarity around how the Fed will respond to changes in the economic outlook and communicate its policy framework. Overall, he asserts that greater clarity will be important to keeping inflation expectations anchored and supporting the Fed’s price stability objectives.

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All views expressed by members are their own and do not necessarily reflect the views of the Bretton Woods Committee.