Our Chief Economist discusses if missed forecasts have damaged the Fed’s credibility, if the Fed is providing clear messages to markets, and what he would change about the Fed’s communication strategy.
The announcements by the Federal Reserve and Bank of Japan last week showed how trapped they are. Rates will remain low for a long time, but that may be an opportunity for investors.
Investors are questioning whether the current monetary policy regime is set to change. What is the outlook for interest rates from here, and what does it mean for investors?