A Fed Chairman giving signals about next moves adds confusion, says Fmr. Kansas City Fed President

Summary

Former Kansas City Fed President Thomas Hoenig discusses Fed communications under Chairman Warsh, arguing that forward guidance adds confusion and basis points of market uncertainty. He criticizes the Fed's lack of explanation for its recent decision to hold rates, and suggests the market will learn credibility from actions rather than signals.

• Hoenig opposes Fed forward guidance, saying it ties hands and creates confusion when conditions change.
• He calls the Fed's recent hold-decision explanation a 'tap dance' and says disappointment should be aimed there.
• He expects the Fed to give fuller explanations in the future, especially at the September meeting.
• Hoenig downplays presidential calls to the Fed chair, saying what matters is the FOMC's performance and consistency.
• The discussion is cut off as he begins to comment on strong inflation numbers in August and September.