Expect bumps in markets as Fed gets less precise on policy plan

NEW YORK: The Federal Reserve should expect more "bumps in the road" as financial markets react to increasingly less precise communications from the US central bank, a top Fed policymaker said on Tuesday.

In a speech, Fed Governor Jeremy Stein recalled last year's abrupt run-up in market-wide borrowing costs and warned that even the most deliberate communications from the central bank cannot prevent such reactions as the time to tighten monetary policy approaches.