In “Does the Fed have a communication problem, or do markets have a listening problem?” Neill Irwin gets it exactly right:
Fed watchers have become spoiled at the sheer volume of information the Fed now conveys about its actions. Detailed policy statements, forecasts for economic variables and future interest rates, news conferences — these are all new innovations in the past six years. It’s a far cry from the not-too-distant past, when investors had to try to figure out what the Fed would do by scoping out the thickness of Alan Greenspan’s briefcase.
In other words, now that we can see more of the inner workings of Fed policymaking, we see the reality: They’re making it up as they go along, like the rest of us.
Maybe like too much booze, too much information can make you giddy!