A key takeaway from the European Central Bank's Sintra forum is that central banks' forward guidance is effectively dead, Tickmill Group's Patrick Munnelly says in a note. Federal Reserve Chairman Warsh has become the trendsetter on this front, while ECB President Lagarde, Bank of England Governor Bailey and Bank of Canada Governor Macklem "all appeared comfortable moving further away from pre-commitment," the market strategist says. For the Fed, Warsh's five policy taskforces provide a useful institutional reason to avoid guidance: until the reviews conclude, almost everything can be described as dependent on the evidence they produce, Munnelly says. (emese.bartha@wsj.com)
Dow Jones Newswires
Central Banks' Forward Guidance Looks 'Effectively Dead' — Market Talk
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A key takeaway from the European Central Bank's Sintra forum is that central banks' forward guidance is effectively dead, Tickmill Group's Patrick Munnelly says in a note. Federal Reserve Chairman Warsh has become the trendsetter on this front, while ECB President Lagarde, Bank of England Governor…