UBS points out that the special communication review led by Federal Reserve Chair Waller could become one of the most influential initiatives since his appointment and may trigger a chain reaction in interest rate market volatility. In a report released Wednesday, the bank’s Chief Investment Office stated that the Federal Reserve’s so-called dot plot had previously helped to “anchor” market expectations in the short term. The team also noted that the use of forward guidance over the past two de

UBS pointed out that the Federal Reserve's special communication review led by Waller may become one of the most influential moves since he took office and could trigger a chain reaction in the interest rate markets. The bank's Chief Investment Office stated in a report on Wednesday that the Fed's so-called dot plot has helped "anchor" market expectations in the short term. Meanwhile, the team noted that forward guidance over the past two decades has reduced market volatility. In June, Waller announced plans to form a special task force to review several key areas of Federal Reserve operations. Earlier this month, he stated that members of the communication group will include University of Washington professor Peter Fisher and former Bank of England official Mervyn King.