In an article published by Bloomberg, BWC Chair Bill Dudley advises Kevin Warsh, the US president’s recent nominee for Federal Reserve Chair, to draw inspiration from the European model to improve the Fed’s communication. He believes that quarterly economic forecasts with alternative scenarios would help markets better understand the Fed’s reaction function. Thanks to more transparent communication, financial conditions could then transmit the monetary policy impulse as effectively as possible.

To read more at Bloomberg, click here.

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