A coordinated retreat from forward guidance across the Fed, ECB, BOE and BOC raises the odds of choppier price action around future policy meetings, since markets will have fewer explicit signals to anchor rate expectations. Traders who have relied on dot plots and guidance language to pre-position ahead of decisions may need to lean more heavily on incoming data releases instead. The shift also reduces the predictability discount currently priced into rates markets, which could widen volatility premia into meeting dates. For the Fed specifically, Warsh's refusal to preview the late July decision leaves the market with limited guidance heading into that meeting, keeping two-way risk alive.---Fed chair Warsh found common cause with ECB, BOE and BOC counterparts at Sintra, all voicing regret over forward guidance and signalling a shift toward less explicit policy signalling. Earlier:After 15 years of word-watching, markets may benefit from a Fed that talks lessSummary:Fed chair Kevin Warsh and ECB president Christine Lagarde voiced aligned criticism of forward guidance at the ECB's Sintra conferenceBank of England governor Andrew Bailey said guidance becomes difficult to unwind once markets treat it as a commitmentLagarde distinguished her preferred approach as framework guidance, explaining how decisions are weighted rather than previewing outcomesWarsh declined to signal whether the Fed will raise rates at its late July meeting, citing his general resistance to forward commitmentsWarsh said membership of five Fed task forces reviewing the central bank's longer term operations will be announced next week, with findings due by year endWarsh described the moment as an opportunity for global central banks to revisit first principles after policies adopted during the 2008 crisisFederal Reserve chair Kevin Warsh found unusual alignment with counterparts from the European Central Bank, Bank of England and Bank of Canada this week, as the heads of major central banks converged on a shared skepticism toward forward guidance at the ECB's annual conference in Sintra, Portugal. According to Axios, the gathering suggested Warsh's rise to the Fed chairmanship is helping accelerate a broader rethink of monetary policy communication norms that have held for roughly two decades.Warsh has long argued that central banks laying out explicit future policy intentions traps them into paths that become difficult to abandon when conditions shift. He found that view echoed on stage in Sintra, where ECB president Christine Lagarde said her one regret was feeling bound by forward guidance during her tenure, and Bank of England governor Andrew Bailey said guidance is far easier to introduce than to later unwind, warning it becomes problematic once markets treat it as a promise.Despite the apparent consensus, some daylight remained between the approaches on offer. Lagarde said she was moving away from forward guidance in favour of what she termed framework guidance, meaning greater transparency about how the ECB weighs incoming data and reaches decisions, rather than previewing specific outcomes. Warsh appeared less inclined to commit the Fed to spelling out its reaction function in similar detail, staying vague even when pressed on the central bank's next move.That reluctance was on display when Warsh declined to indicate whether the Fed is likely to raise rates in the coming weeks or months. He said the policy committee will hold a closed door discussion at its late July meeting and reach a judgment based on the data, offering little beyond that. Warsh also confirmed that membership of five task forces set up to review longer term aspects of how the Fed operates will be announced next week, with findings expected by year end. He framed the moment as a rare chance for the global central banking community to revisit first principles after years operating under frameworks built in response to the 2008 financial crisis. This article was written by Eamonn Sheridan at investinglive.com.