Fed Chair Kevin Warsh says forward guidance has outstayed its welcome and can lead markets, businesses, and households astray "Forward guidance as a regular practice was adopted by my colleagues and me during the global financial crisis." "It was essential at the time, and we introduced it with much fanfare." "But as with other legacies of crisis past, I believe the practice has outstayed its welcome." "In normal times, the role of forward guidance should be limited and circumscribed." "Otherwise, it risks creating ambiguity in the name of clarity." "Oversharing policy deliberations and overcommitting to future decisions can lead markets, businesses, and households astray." "And I believe when policymakers make quasi-commitments on interest rates throughout the cycle, we inhibit our own freedom to make the right calls when it's time to decide."