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A Simple Idea to Improve Fed Communication
Federal Reserve officials announced in November that they are conducting a review of “communication practices” as part of a larger reassessment of the conduct and effectiveness of monetary policy. The reappraisal comes as most people, including first and foremost the Fed itself, are concerned about avoiding a repeat (as early as next month) of the type of miscommunication that contributed to the fourth quarter’s disorderly market sell-off. Any changes should aim to do more than simply add elements to enhance transparency and forward policy guidance. The central bank should also consider ending some practices ... (full story)