Federal Reserve-Bullard calls for improved communication lines from Fed

St. Louis Fed President James Bullard called for an enhanced communication pattern from the Federal Reserve vis-vis the market.   This reassurance process he proposes could be done by presiding a press conference at the end of each meeting.   Officials now have another challenge which is convincing the market about their more open communication lines, at the expense of reviewing the Federal Open Market Committee which focuses more on diversity of views.   The market has long been on their guard with the Fed’s slow and inappropriate way of communicating important information to them.   Andrew Levin, former adviser at the Federal Reserve suggests that the Fed only takes into consideration the views of the members of the FOMC.   It is to be noted that the FOMC reunites 8 times a year and is presided by Fed’s Chair Janet Yellen at least 4 times when quarterly economic projections are in the limelight.   James Bullard likewise commented on other central banks methodology of reporting important news to their stakeholders, suggesting that the Fed will eventually have to shift to a two-way communication line to preserve the cordial relations between the market and the Fed.   Source: Bloomberg
Priscilla Camryn By: Priscilla Camryn
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