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Fed communication retreat risks volatility, Musalem warns
Original: Prospect of Fed pulling too far back on communications poses volatility risk, Musalem says
St. Louis Federal Reserve President Alberto Musalem warned that the Fed risks market volatility if it pulls back too far on its communications with the public. His comments highlight concern that reduced guidance from the central bank could leave investors without a clear picture of policy direction, making market pricing more erratic.
Why now: Investors are closely watching Fed messaging for clues on the path of interest rates.
Alberto MusalemFederal ReserveSt. Louis Fed
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Evidence
- Prospect of Fed pulling too far back on communications poses volatility risk, Musalem says · reuters.com
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