Wosh: Abandoning forward guidance may lead to a loss of market confidence

According to Jinshi reports, BlueBay Chief Investment Officer Mark Dowding pointed out in a report that if Federal Reserve Chairman Waller abandons forward guidance, it may increase the market's risk of losing confidence in the Federal Reserve. He stated that during the periods when previous Federal Reserve chairmen implemented forward guidance, the institution enjoyed a high level of trust and credibility. However, if it falls into a state of information vacuum, market doubts may intensify, and trust in the Federal Reserve may begin to waver.

Dowding also noted that the current level of U.S. debt has reached a historic high, and if a laissez-faire attitude is taken towards market trends, it could lay the groundwork for significant risk hazards.