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Fed's Musalem stresses transparency over policy promises

Original: Fed's Musalem (2028 voter) says central bankers needn't make promises, but should tell the public how and why central bank makes policy decisions

St. Louis Fed President Alberto Musalem, a voting member on the rate-setting committee through 2028, said central bankers do not need to make promises about future policy, but should explain clearly how and why decisions are made. His remarks feed the ongoing debate about how much forward guidance the Federal Reserve owes markets and the public, especially as officials weigh the path of interest rates.

Why now: Markets are scrutinising Fed officials' comments for hints on the interest rate outlook, making any guidance on communication timely.

Alberto MusalemFederal ReserveSt. Louis FedFOMC

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• Fed's Musalem (2028 voter) says central bankers needn't make promises, but should tell the public how and why central bank makes policy decisions · Newsquawk

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