Comments from the Fed's Lockhart:
- Year-end market is not a barrier to December rate hike
- Fed has significant amount of time it can wait to begin reducing balance sheet
- Watching European experiment with negative rates
- Can refine communications tools so markets know more clearly its consensus reaction function and likely response to data
- Next six weeks may be a 'tight period' in which to become confident that global risks have subsided
- Fed not stuck in adverse feedback loop with market but agrees uncertainty around policy may have contributed to volatility
The bolded point is a good one and suggests the Fed realized that going into a meeting with a 50/50 split in markets wasn't going to help anyone. When they finally raise rates, it's imperative that it's clearly signaled ahead of time.
