Kocherlakota: Fed Should Communicate Better for Markets

The video discusses the complexities of US Treasurys, influenced by foreign yields and hedging costs. It highlights the Fed's communication challenges and its dual mandate of price stability and maximum employment. The Fed's approach to data dependency, focusing on long-term economic outlooks rather than short-term data, is also examined.

In what ways does the Fed communicate its decision-making process to the markets?

What challenges does the Fed face in balancing short-term data sensitivity with long-term economic outlook?