Kevin Warsh, former director of the Federal Reserve of the United States, advocated that the central bank should have a more moderate and less visible approach in its public communications.
Warsh criticized the Fed's tendency to make decisions based on "isolated acts," arguing that this posture can generate unnecessary instability in markets and in the economy as a whole.
According to the former director, what is most important for conducting monetary policy are long-term "trends," and not reactions to short-term events.
Warsh's statement comes at a time of debates about the Fed's transparency and communication, with differing views on how much the central bank should explain its decisions to the public.
