Federal Reserve Mussalem: A clearly stated policy framework should include two to three possible scenarios. A predictable and clearly explained policy framework is one of the elements for central banks to gain democratic legitimacy. If the public understands the policy framework, market expectations will be consistent with the Federal Reserve's policy intentions, thereby improving the trade-off between inflation and employment.

Federal Reserve Mussalem: A clearly stated policy framework should include two to three possible scenarios. A predictable and clearly explained policy framework is one of the elements for central banks to gain democratic legitimacy. If the public understands the policy framework, market expectations will be consistent with the Federal Reserve's policy intentions, thereby improving the trade-off between inflation and employment.