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St. Louis Fed's Musalem calls for clearer policy communication

Original: Musalem wants the Fed to explain how and why it sets policy — not exactly what it'll do

St. Louis Fed President Alberto Musalem says the central bank should explain how and why it sets monetary policy, rather than signaling exactly what it will do next. His remarks add to ongoing debate about how much forward guidance the Fed should give markets and the public while navigating an uncertain economic outlook.

Why now: Markets and economists are closely watching Fed officials' views on communication as policy decisions weigh on expectations.

Alberto MusalemFederal ReserveSt. Louis Fed

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