Markets Have to Befriend 'Anti-Forward Guidance' World

Dow Jones14:19

0619 GMT - It is becoming clear that markets will have to get used to an "anti-forward guidance" world, says Danny Zaid at TwentyFour Asset Management in a note after Fed Chairman Warsh's press conference on Wednesday. The Fed's new language, which states that "the accumulation of more information" will determine the appropriate stance of monetary policy, offered markets few additional clues as to the Fed's reaction function ahead of the December meeting, the member of the multi-sector bond portfolio management team says. It suggests the committee remains to an extent data-dependent at this time. "This is consistent with [Fed Chairman Kevin] Warsh's preferred approach of providing as little forward guidance as possible," Zaid says.

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