When Fed Chairman Ben Bernanke speaks from Jackson Hole, Wyoming on Friday, he must explain what the Federal Reserve's objectives are for the economy, Bank of America Chief Economist Mickey Levy told CNBC Thursday.
"In its recent statements, the Fed didn't explain its actions after modestly changing policy," Levy said. "He (Bernanke) needs to lay out what the Fed's views are on inflation by saying the objective is one to two percent. Implicit in that will be an understanding that it's going to avoid deflation."
The Federal Reserve board is holding its annual symposium in Jackson Hole, where Bernanke will deliver a speech on the economy, and Levy says it's the right time to give the markets a clear picture of what the Fed has in mind.