While I applaud San Francisco Fed chief John Williams' decision to livestream all his public speaking events, I dare to dispute the argument he offered in a recent speech:
One of the lessons from the taper tantrum is that it’s not the policy that causes disruption, it’s the uncertainty. The actual tapering did not cause a negative market reaction. Our plans for both rate hikes and the balance sheet are steady and consistently communicated.
It’s frankly the most telegraphed monetary policy of our lifetimes.
This is a very U.S.-centric way of looking at the Fed's track record on communications. From a global perspective, and in view of what smaller but very transparent central banks such as the Riksbank and the Czech National Bank have achieved on the communications front, the Fed is merely struggling to catch up after years of mumbling with great incoherence.