JACKSON HOLE, Wyo. - The Federal Reserve has "undercut" the hoped-for benefits of its large-scale asset purchases (LSAPs) and created market volatility with "imprecise" communication of its intentions regarding those purchases, an economist addressing the Kansas City Federal Reserve Bank's annual symposium charged Friday.

The Fed, which is now buying $85 billion a month of longer term Treasury and mortgage-backed securities, would do better to more clearly define the parameters for phasing out this "quantitative easing," argues Arvind Krishnamurthy, a Northwestern University professor.

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