Make money by obeying the law! The Speed Camera Lottery

We discuss various parts of the consumer reaction function that help explain the divergence between consumer sentiment and some important pieces of macro data. We also give thoughts on what this disconnect may mean for consumer and voter behavior.

While the Fed’s communication toolkit has steadily expanded since 2000—from formal post-meeting statements to press conferences and quarterly projections—a deliberate rollback of forward guidance could reduce policy transparency but also curb market misinterpretations that have plagued rate forecasts.