Richard Clarida: Markets Doing Well by Ignoring the Fed

The transcript discusses the role of inflation expectations in driving inflation and the actions of central banks, particularly the Federal Reserve. It highlights the market's decreasing sensitivity to Fed statements and the challenges in the Fed's communication strategy under Janet Yellen. The need to rethink the Fed's framework and the lack of focus on financial stability and macroprudential policy in the U.S. are also explored.

What is the significance of the Fed's communication strategy in the current economic climate?

Why is there a lack of focus on financial stability in the current monetary policy debate?