Former Minneapolis Fed President Stern on Bloomberg

Stern and Volcker

Gary Stern was asked about the struggles of Fed communication and he said he used to believe that it was beneficial for FOMC members to speak their minds publically but he's beginning to change his thinking. He says that all the different voices lead to a muddled message and that maybe the FOMC meeting is the time to voice opinions.

It comes after Jeff Gundlach yesterday said the Fed is struggling with WIRP, which is the Bloomberg function for Fed fund futures implied probability. He said the FOMC is being bullied by those expectations.

Stern was also asked about the Sept rate decision and said he would support a hike but that he would probably be in the minority.

At the moment, Fed fund futures are pricing in a 34% chance of a hike but the comments from Rosengren may push that slightly higher. Next is a speech from Kaplan at 9:30 am ET (1330 GMT).