Warsh said the Fed will chart a new path, reiterating that it will not provide forward guidance.

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Jinse Finance reports, on July 1, Federal Reserve Chairman Walsh reiterated that he would not provide "forward guidance" on upcoming interest rate policy, marking a major shift for the Fed. "We will chart a new path," Walsh said. "I hope that when we convene for the (policy) meeting in four weeks, we can have a full 'internal debate'." At his first press conference last month, Walsh said Fed policymakers unanimously agreed that forward guidance "is not suitable for the current policy environment." As for whether the Fed will permanently abandon forward guidance, Walsh announced in June the establishment of five special task forces, one of which will specifically study communication mechanisms. The other task forces cover topics including the balance sheet, the Fed's use of data, productivity and employment, and the central bank's inflation framework.
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