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Fed's Musalem Warns Central Bank Must Explain Policies or Risk Volatility

Original: Fed’s Musalem Says Central Bank Must Explain Policies—or Risk Volatility

Federal Reserve official Alberto Musalem warned that the central bank must clearly explain its policy decisions to the public, saying a failure to communicate effectively could fuel market volatility. He argued that transparent guidance on interest rates and the economic outlook is essential for keeping investor expectations anchored. The remarks come as markets closely watch Fed messaging for clues on the path of monetary policy.

Why now: Markets are highly sensitive to Fed communication as investors seek clarity on future interest rate moves.

Federal ReserveAlberto Musalem

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• Fed’s Musalem Says Central Bank Must Explain Policies—or Risk Volatility · Barron's

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