Story perspectives

Fed Ends Forward Guidance, Faces Rare Triple Dissent

8/4/2026

Summary

Story summary

Fed Chair Kevin Warsh announced on July 29 that the Federal Reserve (Fed) will end forward guidance.
Warsh said markets should price policy decisions themselves based on economic data without Fed guidance.
He created five task forces to review the Fed’s communications, balance sheet, data analysis, artificial-intelligence effects and inflation measurement.
Three FOMC members voted for a quarter-point rate hike at the July 29 meeting, the first triple dissent since September 2016.

History

Historical Context

Paul Volcker became Fed chair on August 6, 1979, ended reliance on monetary aggregates and lifted the federal funds rate to a 20 percent peak in June 1981, driving inflation from a 14.8 percent high in March 1980 down to below 3 percent by 1983. In 2024, Fed Chair Kevin Warsh’s move to scrap forward guidance mirrors Volcker’s communication shift, prompting markets to price policy from data.

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Story summary

Fed Chair Kevin Warsh announced on July 29 that the Federal Reserve (Fed) will end forward guidance.
Warsh said markets should price policy decisions themselves based on economic data without Fed guidance.
He created five task forces to review the Fed’s communications, balance sheet, data analysis, artificial-intelligence effects and inflation measurement.
Three FOMC members voted for a quarter-point rate hike at the July 29 meeting, the first triple dissent since September 2016.

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