Bond sell-off sent warning on Fed’s credibility, says top central bank official
Alberto Musalem says he supported dissenters’ calls for a quarter-point interest rate rise
Source: Financial Times
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DW NOTE
Musalem voted with the majority to hold rates, then complained the decision damaged Fed credibility. If the sell-off truly signalled a credibility crisis, he had a vote and chose not to use it. Central bankers who lament market reactions to decisions they personally made are advertising the incoherence, not diagnosing it.