Jim Bianco Calls for Overhaul of Fed’s Post-Crisis Guidance

Jim Bianco, president and founder of Bianco Research, said the Federal Reserve’s forward-guidance structures adopted after the global financial crisis caused significant damage and should be eliminated or radically overhauled.

Bianco said the approach caused more damage “than the problems it has solved.”

Fed Chair Kevin Warsh has also argued that forward guidance should have a limited role in normal times. Warsh has said a quieter Fed can better meet its objectives, as outlined in his case for a quieter Fed.