Federal Reserve Chairman Walsh: Reducing Forward-looking Directions gives markets an opportunity to speak out

On 30 July, Federal Reserve Chairman Walsh stated in a press conference that the Fed’s reduced forward-looking direction of future policy intentions gave central banks more opportunity to listen to the market, rather than being led by the Fed unilaterally. Walsh pointed out that the return on United States debt had risen in the past few months, a change that, in his view, reflected a stronger economic base. He said, “Economic output is performing well. Capital expenditure and productivity performance was strong. The job market is stable and resilient. The bond market is sending many of the same messages.”