The failure of forward guidance or what should we expect

Analysts are calling it a failure of the Fed's new forward guidance policy. The policy, of course, is no forward guidance. Given Fed Chairman Warsh is not going to tell the market much about the intention of Fed policy other than "it will not waver" from trying to fight inflation, the market will have to decide on the efficacy of current policy. The Fed, instead of driving policy, can now learn…