A Fed Chairman giving signals about next moves adds confusion, says Fmr. Kansas City Fed President

• Thomas Hoenig opposes the Fed giving forward guidance, stating it assumes knowledge the Fed doesn't possess and limits flexibility.
• He believes the Fed's 'error' in the last meeting was attempting to explain why they *didn't* move, leading to a 'tap dance' and uncertainty.
• Hoenig suggests the Fed should explain its actions 'when they act' in September, allowing markets to learn from concrete decisions rather than signals.

Former Kansas City Fed President Thomas Hoenig criticizes the Federal Reserve's use of forward guidance, arguing it adds confusion and ties the Fed's hands. He advocates for the Fed to explain its actions clearly after they occur, rather than anticipating future moves, to restore credibility and allow markets to learn from actual policy decisions.