Nihon International Corporate Services has slammed Federal Reserve officials for continuing to confuse markets with daily forecasts for the outlook for US monetary policy. Writing in the firm’s scheduled second quarter investment research bulletin, the Tokyo-based broker-dealer says that the Federal Reserve appears to conducting monetary policy by “rumor, conjecture and guess work”.

Pointing the finger directly at several regional Fed Presidents including James Bullard, Charles Evans, Richard Fisher and others, the newsletter’s op-ed accuses them of deliberately creating confusion in the absence of a clear direction for US monetary policy.

Asking why the Fed appears willing to tolerate core inflation above its target when it spent most of the last two years citing anemic inflation as a key reason for not raising rates, Erik Larssen, chief markets strategist at Nihon International wrote, “Because of the incessant chatter from these regional Presidents, the Federal Reserve is rapidly losing whatever vestiges of credibility it has left.”

The tirade came after Boston Fed President Eric Rosengren added his voice to the chorus of hawks on the Federal Open Markets Committee warning that rates could rise sooner rather than later. He described the bond markets as “wrong” for pricing in just one or zero rate hikes this year even though Fed Chair Janet Yellen said that the central bank would be “cautious” before raising interest rates again.

“For sure, investors are less likely to pay much attention to the individual policymakers but they have just enough knowledge to be dangerous, certainly to markets,” said Larssen.

About Nihon International Corporate Services:
Nihon International Corporate Services is a top-tier independent wealth management and investment house that delivers high caliber financial services to both private clients and institutions.

To individuals, families and charitable foundations with in excess of US$250,000 in investable assets, we provide discretionary investment management, capital advisory investment management and full execution-only services.

To pension funds, insurers and mutual funds, we provide invaluable market insight via the most meticulous research and analysis, seamless, cost-effective execution and a comprehensive suite of value added investment banking services that include securities lending on an unlimited number of global exchanges.