Rabobank: Central Banks Shift to Data-Driven 'Framework Guidance'

Rabobank strategist Michael Every highlights that Fed Chair Warsh and other major central bankers at Sintra are signaling a structural shift in policy communication. They are moving away from traditional forward guidance toward a data-driven approach called 'framework guidance.'

Every attributes this change to several factors: evolving AI capabilities, new inflation measures, and reduced public transparency. The shift implies central banks will rely more on real-time data rather than pre-committing to a policy path.