Barclays: Federal Reserve Chairman Walsh may advocate a reduction in the use of forward guidance by the Federal Reserve

ON 24 AUGUST, FIA REPORTED THAT THE BARCLAYS INTEREST RATE STRATEGIST HAD STATED IN HIS REPORT THAT FEDERAL RESERVE CHAIRMAN WALSH MIGHT ADVOCATE A REDUCTION IN THE USE OF FORWARD GUIDANCE BY THE FED, AS HE SAW FORWARD GUIDANCE AS A SOURCE OF PAST POLICY FAILURES; THAT IT WAS EXPECTED THAT WALSH WOULD ALSO EMPHASIZE THE LONG-TERM DRIVERS OF THE ECONOMY, PARTICULARLY PRODUCTIVITY TRENDS AND THEIR IMPACT ON POTENTIAL GROWTH; AND THAT WALSH WAS UNLIKELY TO PROVIDE POLICY GUIDANCE IN THE NEAR TERM, BUT THAT THE MARKET WOULD SEEK MORE INFORMATION ON HOW FOMC PLANNED TO RETURN INFLATION TO ITS 2 PER CENT TARGET。