Fed’s Waller says reaction function imperfection can be acceptable
Fed official Waller said the reaction function may have imperfections, but is qualitatively important. He argued against surprising markets and said the old “never explain” model was not a good approach.
Have A Very Different View On Reaction Function Perfection Than Warsh On Fed Transparency, Doesn't Do Any Good To Surprise Markets Giving Some Idea Of What's Ahead Allows Investors To Make Decisions 'Never Explain' Was Old Model, Good Luck With That - It's Not A Good Model