Washington hopes the Federal Reserve will reduce signaling, but this may exacerbate market volatility.

Analyst Colby Smith wrote that Federal Reserve Chair Powell has been tight-lipped about the future path of interest rates, providing very little clear guidance. Powell's approach has left the Fed with considerable flexibility in their next steps, but it also adds a risk: the Fed Chair may not firmly control the market's narrative on economic trends or central bank policy reactions, leading to misunderstandings that need to be clarified, causing market volatility to increase. Chief economist Marc Giannoni of Barclays Bank in the United States said, "When you say nothing, you're essentially handing over more control to the market. Eventually, he may get frustrated with the market's judgments about the future." Powell's preferences do not seem to be shared by his colleagues. The 12 regional Fed presidents and members of the Washington Federal Reserve Board will continue to publicly discuss economic prospects and how policy may change in specific circumstances. Vincent Reinhart, a senior executive at Mellon Investment Management in New York, said, "The core issue is that people with different viewpoints will fill this void." Reinhart expects that the most vocal voices will be those in favor of raising interest rates, a camp that has significantly expanded in recent months.