Federal Reserve's Kashkari: Clearly communicating the policy response mechanism will help the market understand.

Federal Reserve official Kashkari stated on Wednesday that clearly communicating to the public and the market how the Fed will adjust its policy responses under different economic scenarios, known as the "reaction function," is helpful and should continue. In an interview, Kashkari emphasized the value of the Fed continuing to explain its policy response mechanism to the market. He reiterated his call for the Fed to begin a series of small interest rate hikes to curb the current inflation, which is above the Fed's 2% target. Kashkari said, "I believe it is valuable to maintain the tradition of explaining our policy reaction function to the public, allowing them to make their own judgments based on that information."