Institutions: Fed Communication Makes Markets Feel Difficult, Could Drag Down Long-Term Bonds and Stocks

TechFlow news, on July 30, MainSky Asset Management Board Chairman Eckhard Schulte stated in a report that Fed Chair Walsh's practice of avoiding providing any form of forward guidance makes it extremely difficult for the market to form a coherent analysis of Fed policy. The market will have to adapt to this communication style; the resulting high uncertainty will drag down the stock market and long-term bonds, as well as the US dollar. Walsh clearly stated that the Fed is serious about its 2% inflation target and intends to achieve this goal. But he did not provide a coherent explanation for why the Fed did not follow the opinions of the three dissenting members who advocated for rate hikes. (Jin10)