BAML Confused By Fed Tea Leaves, Doesn't Think Yellen Will Provide Clarity At Jackson Hole

There is a “mystery” on Wall Street, and it has to do with central bankers. No, the mystery has nothing to do with proposals for an independent overall of the regional central bank power structure and their semi-private status, as was recently reported in The Wall Street Journal. The public knowledge regarding the process for filling regional Fed presidential appointments, and the influence of the largest banks, remains foggy at best.

The current quandary on Fed watchers mind leading into the Jackson Hole event is Janet Yellen and “the mystery of the Fed’s policy reaction function,” according to a research report from Bank of America Merrill Lynch.