Even at 0%, Rising Rates Loom Over Europe’s Weakest Economies

Reuters

‘Embrace the uncertainty’ from less central bank guidance – former Fed officials

Investors and policymakers should welcome the Federal Reserve’s changing tack to provide less definitive signals on forward guidance, even as markets scramble to guess the U.S. central bank’s next policy moves, two former Fed officials said. “The kind of guidance we’ve seen in the past … creates an expectation that’s unrealistic,” Dennis Lockhart, former president of the Atlanta Federal Reserve, told the Reuters Global Markets Forum (GMF) on Thursday. “I think it’s better to embrace the uncertainty and understand that (the Fed) is navigating and figuring it out as they go along,” he said.