More flexibility - more uncertainty in monetary policy

"the Committee is prepared to increase or reduce the pace of its purchases to maintain appropriate policy accommodation as the outlook for the labor market or inflation changes."


The latest FOMC minutes tell us that the Fed wants to have more flexibility to adjust asset purchases. Of course, this increases the amount of uncertainty in the market because we do not know the criteria that will be used to make these changes. Lower unemployment? Higher asset prices? We do not know and this is a critical issue for the markets.