WASHINGTON — Federal Reserve Gov. Jeremy Stein is the latest Fed official to try to explain last week's monetary policy statement and remarks from the Fed chairman, saying unequivocally Friday that despite the outsized market reaction the "fundamentals" of policy are "broadly unchanged."

But while Stein said one should not read too much into the market reaction, he also stressed that the market reaction cannot be dismissed as inconsequential or just noise, since market behavior can affect policy, and it also informs the Fed on how its communications strategy is working.

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