Behind the Markets Podcast · Friday, August 28, 2026
The Federal Reserve Chair, in a speech at Jackson Hole, admitted that the central bank had been wrong about the extent of forward guidance needed. He suggested that the reliance on such guidance might have been excessive given that interest rates are no longer near zero.
“He also owned forward guidance. He said, you know, I I believed in forward guidance and and it was appropriate in the 2000 because we we he didn't say so much, but he said, we lowered short-term rates to zero. So how we're going to affect long-term rates by saying we're going to stay low on shore. And it worked. But we're not at zero anymore. So all that is an important anymore and we've been wrong.”