Janet Yellen and the Fed's TMI Problem

The video discusses the evolution of the Federal Reserve's communication strategy since 1994, highlighting the shift from secrecy to transparency. It examines the impact of this change on market reactions and monetary policy effectiveness. The speaker warns of potential risks, such as investor complacency and the deferral of monetary policy, which could lead to inflation overshooting. The discussion also touches on the unintended consequences of the Fed's actions, emphasizing the need for a focus on economic fundamentals.

Discuss the concept of 'unintended consequences' in the context of the Federal Reserve's monetary policy.

In what ways do fund managers' goals influence their investment strategies in relation to Federal Reserve policies?