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 that are ... (full story)