‘Fed communication is in disarray’: Citi Economist

The Federal Reserve have communicated their perspective on where interest rates are headed in the future through the Fed dot plot, though there were some outliers from the rest of the group. In addition, several Fed leaders have expressed differing opinions on the direction of the U.S. economy, leading to mixed signals for investors. Nathan Sheets, Citi Global Chief Economist, joins Yahoo Finance to discuss the economy, Fed leadership, and how the Central Bank needs more cohesion. "I think that's what we're seeing, and that's what we're hearing at the moment, is the markets now are trying to grasp kind of what is the signal from the Fed and how committed is the fed to getting inflation back to 2.0%, or is 3%, 2.7, 2.8%," explains Sheets. "In Jay Powell's book, is that quote, unquote 'good enough?' I think that's the debate right now that people are having about Fed policy: how does he think about upper two-handle inflation." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.