US Fed Communications Going Through Rocky Patch Says Member

A senior Federal Reserve official said on Wednesday the U.S. central bank’s communication efforts had been going through a tough patch, after a week of intense market volatility following news it would scale back its bond buying later this year.

“It has been a rocky period over the last couple of months for communication from the Fed,” Jeffrey Lacker, president of the Federal Reserve Bank of Richmond, told Bloomberg television.

He also warned the U.S. economy could face a few more years of sluggish growth, but played down fears that current low levels of inflation could push the economy into a damaging deflationary trap.

“The low inflation numbers have given me pause. But I’ll have to say I am convinced so far that they appear to be transitory … I’m pretty confident it will pick up,” he said.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza