Fed Communication Enhancement Recommended by Mester

Reported 6 months ago

Loretta Mester, Federal Reserve Bank of Cleveland President, suggests that the US central bank should improve how it communicates economic conditions affecting future policy decisions by adding more details to policy statements and policymakers' economic forecasts. Mester emphasizes the importance of thoroughly explaining the impact of economic developments on policy decisions, using more words and scenario analysis, and connecting officials' forecasts with key economic variables to enhance transparency and credibility. Michelle Bowman, Fed Governor, also discusses the balance sheet reduction.

Source: YAHOO

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