Fed Chair Warsh says must think about a new conduct for monetary policy and we'll be charting a new course so the Fed can make better decisions

Exciting, consequential time to be a central banker.FOMC/Guidance: Reiterates not going to give forward guidance. Wants to have good debate with his colleagues on FOMC, and he values their views. Doesn't want to make any judgements now, the Fed is set to meet in four weeks. We'll be an independent central bank, and no changes in independence. If there are obstacles that prevent them from having healthy debate at meetings, should get rid of it, was referring to forward guidance. Would not be surprised if in 12 months in a better path to deliver the mandates of the central bank. Reiterates interest rates should be the dominant means by which the Fed sets monpol. Fed will remain independent after Supreme Court. We'll follow Supreme Court decision. His hope is that in 9-12 months from now they'll be using new tech to understand the economy. There will be dot plots at least for the short time. AI: AI boom is showing itself first and very prominently in the US, trying to monitor these developments, and up to the Fed to decide if AI is inflationary. In terms of the inflationary impact in the near term, can observe it on the demand side. Whether that finds its way into a broader set of goods, Warsh doesn't have any news on that front. Monetary policy spills over between their economies. US likely to be a big winner from AI. Suggests only in the first or second innings of this revolution. Dual Mandate: Fed wants to deliver price stability. Fed must deliver on both sides of its mandate. Labour markets are steady. Supply side solid, and in the price stability business. Looked around, and see that prices are too high. Expectations of inflation over the first four weeks have come down. If anyone thought we'd be happy with inflation above 2%, they'll be disappointed. Economy:Volatility is down, yields are down.Task Force:Next week will likely have news on the leaders on the task force that he's appointed.FX:Declined to comment on the Yen, and says he won't be drawn into it.Productivity/Growth: Over the last year, productivity in the US and structural productivity is in high 2% range. Potential growth looks like it has trended upwards. If last four quarters an indication, reason to be optimistic. Balance Sheet: Asked about what comfortable level he sees the balance sheet at, but again says no forward guidance. No secret wanted balance sheet to be smaller, and has not changed his view in first four weeks at the Fed. If there is a change in balance sheet policy, decision will be well deliberated and communicated. Balance sheet borders on fiscal policy.