Federal Reserve Officials Talk Too Much
https://www.bloomberg.com/opinion/articles/2023-11-20/federal-reserve-officials-talk-too-much
Excessive communication by the central bank can aggravate the risk of both market and economic accidents.
My take from March:
Shifting monetary policy lags confuse markets and central bankers by Vivekanand Jayakumar
https://thehill.com/opinion/finance/3921016-shifting-monetary-policy-lags-confuse-markets-and-central-bankers/
Today’s central bankers have little or no desire to appear Delphic in their public commentary. In fact, the Fed has come long a way in its communications strategy since the early days of the Alan Greenspan era. Known for his cryptic comments, former Fed Chair Greenspan once famously quipped: “I guess I should warn you, if I turn out to be particularly clear, you’ve probably misunderstood what I’ve said.” Nowadays, it is far more likely that Fed officials will “err on the side of saying too much rather than too little,” as a recent St. Louis Fed study noted.
https://www.bloomberg.com/opinion/articles/2023-11-20/federal-reserve-officials-talk-too-much
Excessive communication by the central bank can aggravate the risk of both market and economic accidents.
My take from March:
Shifting monetary policy lags confuse markets and central bankers by Vivekanand Jayakumar
https://thehill.com/opinion/finance/3921016-shifting-monetary-policy-lags-confuse-markets-and-central-bankers/
Today’s central bankers have little or no desire to appear Delphic in their public commentary. In fact, the Fed has come long a way in its communications strategy since the early days of the Alan Greenspan era. Known for his cryptic comments, former Fed Chair Greenspan once famously quipped: “I guess I should warn you, if I turn out to be particularly clear, you’ve probably misunderstood what I’ve said.” Nowadays, it is far more likely that Fed officials will “err on the side of saying too much rather than too little,” as a recent St. Louis Fed study noted.