What forward guidance actually does, and why Warsh wants it goneForward guidance is the practice of central banks signaling their likely future policy moves. AdvertisementWarsh has publicly argued that forward guidance handcuffed the Fed during the pandemic-era inflation surge, making it harder to pivot when prices started climbing faster than anyone expected. During the 2008 financial crisis, then-Governor Mark Carney deployed explicit forward guidance to stabilize expectations and calm rattled markets. What this means for marketsThe most immediate impact will likely show up in front-end rate volatility. Short-term interest rate markets have spent years pricing in Fed guidance with a high degree of confidence.