Fed’s Musalem Says Central Bank Must Explain How It Turns Data Into Policy

This is a communication argument rather than a policy signal: Musalem is defending the framework's credibility, not hinting at a rate path, and the explicit refusal to promise one is itself the substance. For markets that parse Fed language for direction, the takeaway is that transparency is being framed as an accountability obligation tied to delegated authority, which matters for how much guidance officials may be willing to give. Whether this emphasis on explaining the data-to-policy transmission extends to other Fed voices is the open question.