Fed's Communication Strategy Under Scrutiny After Confusing Press Conference

“The price for that is volatility, and you could see that in the swing in the market over the last hour or so. Equities were positive, if they turned negative again, bring up the bondboard if we can, and just look at twos, tens, and thirties.”

“But that's why the task forces will be very very interesting because they will certainly also on their communication task force. They will have to discuss what is the best approach. Is it the best approach to have no forward guidance? Is it a better approach to have forward guidance. If you do not have forward guidance, you do have more volatility. But in fairness to Kevin Watsh's point, it did say that, well, when we don't say anything, Margat's reacting to the data as we go along. But the risk, of course is that if de marget is only reacting to some data, that then also needs to be resolved in the task force on communication, namely, is that the right way to do it because it runs the risk, as you're saying, John, that you will get had mobile.”

“A lot of words, not much information, and the FED chair leaves with markets probably going the wrong way from what he would like to see at this point. The thing he wouldn't answer is what they actually did today. He talked a lot about talking, but when are they actually going to do something, whether it is acknowledging that the three and a half to three seven five rate range is adequate for the job they want, or it's not and they need to raise interest rates, And there was no acknowledgment of what the case was really on either side. It was a lot of talk about while we're talking, and that don't get the markets anywhere, and people aren't going to be very happy with what they heard.”