Clarida: The Fed Is Sending Mixed Messages

The transcript discusses the Federal Open Market Committee's (FOMC) current state of uncertainty and mixed messages due to a lack of clear direction from the chair, Janet Yellen. It highlights the communication challenges within the Fed, the market's reaction to these issues, and the importance of leadership clarity. The discussion also touches on how market participants are increasingly ignoring the Fed's communications, which could impact the Fed's credibility.

What is one of the main issues facing the FOMC as discussed in the first section?

• Too many speeches by Janet Yellen

• Lack of clear communication from the chair

• Complete agreement among all members

• Overconfidence in their decisions

According to the second section, what is a potential consequence of the FOMC's indecision?

• Rapid economic growth

• Loss of credibility

• Increased public trust

• Immediate market stability

Who is mentioned as having a coherent and consistent view within the FOMC?

• Charlie Plosser

• Richard Fisher

• John Williams

• Janet Yellen

What role does the chair play in managing the FOMC, as highlighted in the third section?

• Providing clear guidance and direction

• Focusing solely on market trends

• Ensuring complete agreement among members

• Avoiding public speeches

How have market participants reacted to the Fed's communication, according to the third section?

• They have increased their investments

• They have become more attentive

• They have demanded more speeches

• They have started to tune out