Comms Is Key: Restoring Credibility After Fed's Benign Neglect Adds Uncertainty To Bond Yields

The Fed’s move away from forward guidance is adding more term premium back to bond yields.

The Fed under Kevin Warsh is sticking to its guns in only offering minimal guidance to markets on the policy outlook. A terse statement was followed by a press conference where the new chairman reiterated his view that markets should make up their own mind on where rates are headed.