One Chart That Shows the Federal Reserve Is Losing Credibility

There are two different kinds of credibility for central banks that matter for markets: whether monetary policymakers do what they say they will, and whether those actions are perceived to lead to the successful completion of their respective mandates.

For years, the Bank of Japan has struggled with the latter in its battle against deflation. But according to Société Générale, it's the former the Federal Reserve now has to worry about, as there are signs that market participants no longer take Janet Yellen at her word.