Ex-BOE's King Says Powell Needs to Protect Fed Independence

The transcript discusses the challenges faced by Jay Powell in communicating with Congress and the public. It highlights the need to provide useful information without committing to specific interest rate paths, which could be risky. The importance of forward guidance and understanding market expectations is emphasized. Powell's audience includes both Congress and the wider public, and his communication strategy will evolve over time. A key focus is maintaining the Fed's independence and ensuring that its reaction to economic data is clear.

In what ways does the text suggest that the Fed should provide guidance to the markets?

What role does the audience play in shaping Jay Powell's communication strategy?