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Fed's Musalem says central banks must explain policy decisions

Original: Fed's Musalem (2028 voter) says central bankers needn't make promises, but should tell the public how and why central bank makes policy decisions

St. Louis Fed President Alberto Musalem, a voting member of the rate-setting committee through 2028, said central bankers do not need to make promises about future policy, but should explain to the public how and why policy decisions are made. His remarks emphasize transparency over forward guidance as markets weigh the path of Federal Reserve interest rates.

Why now: Markets are closely parsing every Fed official's remarks for signals on the future path of interest rates.

Alberto MusalemFederal Reserve

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