Fed decision to obscure its reasoning not defensible, Claudia Sahm says

Fed decision to obscure its reasoning not defensible, Claudia Sahm says
Fed faces questions on decision logic

Claudia Sahm criticized the Federal Reserve's move to obscure its rationale after deciding to hold rates steady, describing the hold as defensible but the lack of transparency as not. She also referenced Warsh's advice to interrogate reality and suggested that those wanting the committee view should consult Williams, while noting that Congress is likely to have its own questions.

Sahm has previously called for the FOMC to provide more timely explanations of its decisions, following meetings focused on inflation and the committee's approach to hastening economic normalization, as reported here. She has also challenged views on economic sentiment tracking, notably expressing skepticism about Kevin Hassett's argument that true sentiment should be measured by observing Americans' behavior, detailed in this article.

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