Study says markets on Fed's wavelength

According to a recent study by the Federal Reserve Bank of Cleveland, better communication by the U.S. central bank has dramatically cut mistakes by markets betting on future interest rate moves.

"It does appear that market participants have a much improved understanding of the intentions of the FOMC (Federal Open Market Committee), as evidenced by the remarkably small prediction errors over the past two years," said the study, published earlier this month.

The mistakes made by markets in guess

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