Markets typically respond to Fed comments with price swings in either direction, and recent research shows they are particularly reactive to Powell.
And given the Fed's "data-dependent" approach, the baseline can change rapidly as new economic reports are released.
"So now we're stuck with a system where there's only one view, there's only one outlook, it's a baseline outlook.
And there's really no way to understand the Fed's thinking about where are the risks."
Watch the video above to learn more about how the Fed's busy speaking schedule can create market volatility and how it balances transparency with market impact.
Persons:
Jerome Powell, Powell, Andrew Levin, —, Levin, Ben Bernanke
Organizations:
Fed, Federal, Center for Economic Policy Research, Dartmouth College, Federal Reserve
Locations:
Federal, what's