The market's shocked reaction to the Fed's decision not to taper last week has raised concerns over the bank's ability to communicate with investors, according to research house Capital Economics.
"The communication difficulties which both the Fed and the Bank of England have experienced in recent months - and the easier time which the European Central Bank and the Bank of Japan have had - suggest that simpler policy frameworks may be more effective," said Andrew Kenningham, senior global economist at Capital Economics.
Since June, the Fed has maintained that it would only reduce the pace of its asset purchase program if the U.S. economy was strong enough to withstand it. The bank set thresholds, namely that unemployment would need to fall to 6.5 percent, while inflation would need to rise at a pace of 2.5 percent.
(Read more: Why prospect of Fed taper is looking more distant)
However, although U.S. auto and home sales have surged in recent months and employment has showed slow but steady growth, the improvement was not enough to convince the central bank to push ahead with its tapering plan. Markets were astounded at the 'no taper' decision, given many expected that a $10-20 billion taper was more or less a certainty.