Posted 10/20/2023, 3:06:59 PM
Fed Lacks Clear Vision on Interest Rates, Risks Economic Instability with Overtightening
- Federal Reserve lacks long-term vision on interest rates, risks overtightening - Fed should establish clearer guidance on rate path instead of reacting to each data point - Risk of pushing rates too high too fast could "break something" in the economy - Fed needs to stabilize volatile bond market which is critical for housing, broader economy - Blackout period limits Fed speeches, but policy stability needed as economic conditions unclear
