Fed Chairman Kevin Warsh declines to hint at July rate decision

Summary

At the ECB Forum in Sintra, CNBC's Sara Eisen moderates a policy panel with ECB President Christine Lagarde and Fed Chairman Kevin Warsh. Lagarde defends the ECB's recent rate hike in reaction to an oil shock and explains the shift from forward guidance to a data-dependent framework. Warsh declines to hint at a July rate decision, emphasizing openness ahead of the FOMC meeting. The conversation underscores divergence in central bank strategies and communication.

• ECB President Lagarde says the ECB raised rates due to rising inflation outlook and oil supply shock, with a unanimous decision.
• Lagarde rejects traditional forward guidance in favor of 'framework guidance' that requires markets to assess indicators themselves.
• Fed Chairman Warsh aligns with Lagarde on moving away from explicit forward guidance.
• Warsh refuses to signal whether a July rate hike is on the table, pointing to upcoming data and FOMC debate.
• US inflation is noted as higher and further from target than euro zone, yet the Fed has not raised rates so far.
• The panel illustrates a broader debate on monetary policy divergence and communication among major central banks.