Fed Shifting From Forward Guidance, Volatility Seen Higher: TD

TD Securities' James Rossiter argues the Federal Reserve is driving a structural shift away from detailed forward guidance and explicit reaction functions. Under that approach, markets are left to infer policy direction from incoming data rather than from stated policy paths.

The change in communication style could contribute to higher volatility as investors adjust to less predictable central bank signalling. Rossiter framed the shift as a change in how the Fed communicates rather than a single policy decision.