Fed Harmony Hides the Dangers of Groupthink

Traders and investors trying to parse the statements coming from the world's most important central bank are at a loss: Will an interest-rate increase come in September? And will there be one, two or no hikes this year? Instead of clarity about the economic outlook, the Federal Reserve is delivering Kodak moments, highly staged events that seek to communicate control but which really suggest that form has replaced substance.

A photograph taken at last week's Jackson Hole gathering of central bankers and economists shows Fed Chair Janet Yellen flanked by New York Fed President William Dudley and Fed Vice Chairman Stanley Fischer. "I don't think we're propping up the Chair," Fischer said in response to a question on Tuesday from Bloomberg TV's Tom Keene. But he said the photo "sent a message that people within the system are thinking along the same lines."