US Fed's Mester calls for additional forward guidance

  • forward guidance should, in more normal times, be more a communication device than policy tool
  • call for forward guidance to evolve to give more info on conditions the Fed assesses in setting policy
  • FOMC could in longer run engage in "limited sales" of agency mortgage-backed securities to reduce residual holdings
  • has plan for normalization challenges longer term
  • Fed is very cognizant of risk of bubbles but so far this risk has been minimal

Oh goody, even more forward guidance that flips more often than a pancake

Cleveland fed head speaking at a scheduled event in Paris. Not an FOMC voter this year

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