Plosser Says Fed Needs to Communicate Better

The transcript discusses the Federal Reserve's anticipated rate rise and the challenges it faces in communicating its policy, particularly regarding its balance sheet strategy. It highlights the Fed's claim of being data-dependent, yet questions the clarity and consistency of this approach. The discussion also touches on how past communication errors have affected market trust and the divergence between market expectations and the Fed's stated intentions.

What challenges does the Federal Reserve face in communicating its policy decisions?

In what ways has the Federal Reserve's past behavior affected current market expectations?