New Zealand’s central bank just made a grave error—Fed chair Kevin Warsh should learn from it
Warsh says that in normal times, the central bank does investors no good by dropping lots of hints. But decades of transparency cannot simply be unwound. For one thing, plenty of Federal Reserve officials are talking as much as ever, despite the chair’s reticence. And at a time of unease in the market for sovereign debt, is it prudent to allow a vacuum to develop?
