The Federal Reserve has been quite 'erratic' in its message over the last few meetings, a former member of the U.S. central bank told CNBC Wednesday.
has been quite "erratic" in its message over the last few meetings, creating uncertainty for the markets and investors, a former member of the U.S. central bank told CNBC Wednesday.announced a rate cut for the third time this year. However, he also signaled that there could be a pause in any further monetary policy easing. Market players were expecting more guidance on the Fed's future course of action.
"It's kind hard to know what the terms and conditions under which they might act in the future and I think that's problematic for the Fed and problematic for the markets and the public, not knowing under what sort of circumstances will they return to easing or reverse and raise rates again," Plosser said at the UBS European Conference.in 2019 nor in 2020. However, the Fed went ahead and cut rates in October.
Plosser told CNBC that "this notion of making a monetary policy decision based on some prospective decision by the administration or China or somebody else, I think it is unprecedented and not a wise way to communicate your actions."
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