Central bank reduces forward guidance; markets now react directly to economic data.

In the inter-meeting period market attention centered on real data And real economic developments Prices reacted in real time to incoming information And the reduction in forward guidance may have been a factor Market participants are learning to play the ball not the referee And market prices will continue to respond in the direction and magnitude they see fit This is in my view a change for the better And we're just getting started After all the central bank need not always and everywhere be the center of attention I understand the desire for rolling forecasts and commentary from this committee But for our part we need to observe market reaction to developments direct and unfiltered I want to stress of course That decisions by this committee matter a great deal And where necessary and appropriate we will not hesitate to act A second economic development Is one that I noted at the congressional oversight hearings this month But it's worth repeating The most striking feature of the economy is the strong growth of business investment The surge in high-tech CAPEX has been remarkable But that does not necessarily make the Fed's role any easier