Federal Reserve’s Jeremy Stein speaking on the US economic outlook and monetary policy to the Money Marketeers at New York University – from a prepared text (audience questions will follow):
- Forward guidance on rates will be more qualitative, less deterministic as policy normalizes
- Overly managing communications to reduce market volatility may be ‘self-defeating’
- FOMC’s ‘reaction function’ not predetermined, tends to evolve over time given many members
- Fed may face more ‘bumps’ in communication as it provides less precise forward guidance
- Good communication’ alone cannot bring completely smooth exit from accommodation
- Fed in a ‘very good position’ on asset purchases given market expectations for ending them
Headlines via Reuters
Full text is here: Challenges for Monetary Policy Communication
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Everyone is really waiting in Yellen , who will be testifying before the Joint Economic Committee of Congress, due in the US morning session
