Powell Says Fed Will 'Let the World Know' Before Tapering

The transcript discusses the importance of cautious exit strategies in monetary policy, highlighting lessons from the global financial crisis. It emphasizes the sensitivity of markets to asset purchase paths, referencing the taper tantrum. The speaker outlines the need for outcome-based guidance in monetary policy, focusing on risk management rather than fixed timelines. Finally, it stresses the importance of clear communication regarding progress towards economic goals and asset purchase plans.

What conditions must be met before the committee discusses specific dates for policy changes?

How will the committee communicate its decisions regarding asset purchases to the public?