Fed to hold media briefings in historic shift
By Mark Felsenthal | YahooNews.com / Reuters
Federal Reserve Chairman Ben Bernanke will break nearly 100 years of tradition at the U.S. central bank next month when he begins talking to the media after policy meetings.
The historic shift at an institution known for its secrecy will give Bernanke an opportunity to better inform the public and financial markets on how the Fed intends to maximize growth and keep inflation at bay. It also may help demystify the Fed at a time the central bank faces intense pressure to open up.
Bernanke, who has championed greater transparency since taking the reins at the Fed in 2006, will kick off on April 27 a program of four-times-a-year news conferences following a Fed meeting on monetary policy, the central bank said on Thursday.
It will be the first regularly scheduled briefing by a Fed chairman in the central bankís history.
The announcement brings the 97-year-old U.S. central bank into line with its peers from the other Group of Seven rich countries.
With reams of market commentary devoted to parsing the Fedís post-meeting statements, the central bank will now be able to convey a more-nuanced message on monetary policy than its brief statements can.
But it is not without risks.
With investors hanging on every word of the powerful Fed chairman, any misstep could roil financial markets.
"While it does give Bernanke an opportunity to clarify any market misinterpretation of the policy statement, it also opens the door to misinterpretation of what he says," said Kevin Flanagan, chief fixed-income strategist at Morgan Stanley Smith Barney. "Heís still going to be very careful."
FACING THE CRITICS
Congressional and public outcry for greater Fed disclosure has grown louder in the wake of the financial crisis, when the Fed bailed out failing financial firms and set up an array of programs to pump money into frozen credit markets. While some credit the Fed with saving the economy, many of its measures were met with stiff criticism.
An effort by lawmakers to expose the Fedís policymaking deliberations to congressional audits won a surprisingly high level of bipartisan support last year. Some members of Congress have also sought to narrow the Fedís mandate to focus solely on inflation rather than also aiming to keep unemployment low.
The Fed said Bernanke would hold a briefing after each policy meeting at which officials provide their quarterly economic forecasts, which fall in June and November this year.
"The introduction of regular press briefings is intended to further enhance the clarity and timeliness of the Federal Reserveís monetary policy communication," the central bank said.
In a related move, the Fed said it would release its policy statement at 12:30 p.m. EDT (4:30 p.m. GMT) on those days, instead of the usual 2:15 p.m. EDT. The Fedís policy panel meets a total of eight times a year.
OPENING THE DOOR
The Fed, which did not begin announcing its policy moves until 1994, has slowly been coming into the light.
Among other steps, it decided in 2004 to move up the publication of minutes of its meetings to three weeks from about six; in late 2007, it moved to issue economic forecasts quarterly, rather than twice a year; and in 2009, it began providing a long-run inflation forecast that is viewed as a de facto target.
Nevertheless, the Fed has fought to keep some of details of its operations secret. This week, it lost a court battle to withhold the names of banks that had taken emergency loans.
Faced with fierce criticism over the Fedís crisis-fighting steps, Bernanke has stepped up efforts to explain the central bankís actions to the public. He has given two extensive television interviews -- a rarity for a sitting Fed chief -- and taken reporters questions after two speeches.
It may take some time for financial markets to adapt to the Fedís new communications plan.
Read the full article at: news.yahoo.com
Fed Chairman Ben Bernanke Will Hold Press Briefings Four Times A Year
Video from: YouTube.com
Bernanke at the ICBA Meeting
Video from: YouTube.com
Also tune into:
John Perkins - An Economic Hitman on Predatory Capitalism & Corporate Monopoly
Tracy Twyman - Alconomics, Money & Magic
Alan Watt - Money, Magic and Words
Ellen Brown - The Web of Debt & The Manufactured Financial Crash
Joseph P. Farrell - Babylonís Banksters, Nazi International & Global Finanical Blackmail
Jim Marrs - Trillion-Dollar Bailout Conspiracy, American Revolutions & Wikileaks
Mary Croft - Natural Man vs. Artificial Person, Law, Money & Banking
Federal Reserve Risks Ruining Reserve Currency
Federal Reserve to print billions of dollars in massive shadow stimulus
Federal Reserve loses suit demanding transparency
Controlling the Global Economy: Bilderberg, the Trilateral Commission and the Federal Reserve
Gallup Poll: Americans Turning Against Federal Reserve
The Federal Reserve is Bankrupt
Federal Reserve sets stage for Weimar-style Hyperinflation
Banking reform bribery exposed in European Parliament
Banksters & Government Con Exposed on MSNBC
How Attorney General Holder Colluded With Bank Of America To Destroy Wikileaks And Silence Unfriendly Journalists
6 Charts Which Prove That Central Banks All Over The Globe Are Recklessly Printing Money
Latest News from our Front Page
Obama Administration Likely to Block New Redskins Stadium
The Obama administration will likely block Washington, D.C., authorities from building a new stadium for the NFL‚Äôs Washington Redskins because of objections to the team‚Äôs name.
The National Park Service (NPS) owns the land under the 54-year-old Robert F. Kennedy Memorial Stadium, a venue two miles east of the Capitol that hosted the Redskins from 1961 to 1996. Some city leaders ...
Safe spaces, white tears and getting kicked out of a women's group - by two men
Lately I've been kicked out of a couple of groups I belong to, for daring to question received wisdom or refusing to go along with the rules of identity politics.
For instance, I was thrown out my university women's group -- by two men! -- for questioning an article on Jezebel about "cultural appropriation."
They explained that the group was supposed to ...
Ghost rider in the sky: Scientists use lasers to project movie onto clouds
A green ghost rider appeared in the sky over the British city of Nottingham when scientists started testing a newly developed projecting device which allows the beaming of moving images directly onto clouds for the first time ever.
The image of a galloping horse rider was projected onto the clouds from a distance of 50 meters by a special laser-based projection ...
China‚Äôs stock market is crashing, and the Chinese are trying to do the exact same thing America did in 1929
‚ÄėWhile European attention is focused on Greece, China is having a serious market meltdown.
After exploding earlier in the year because of deregulation, China‚Äôs benchmark Shanghai Composite has collapsed a crazy 29% since the highs of early June. China‚Äôs other stock markets have had similarly steep falls.
Bloomberg notes that the crisis is closely mirroring the 1929 Wall Street crash, which led ...
Oregon Is First State to Charge Drivers for Each Mile They Drive
When he's not riding his bicycle, Rep. Earl Blumenauer, an Oregon Democrat, said he's driving a fuel-efficient hybrid, and that's a problem, because it means he's not paying his "fair share" for highway maintenance.
Blumenauer says that's why he signed up for OReGO, the nation's first program to charge drivers based on the number of miles they drive.
The program launched on ...
|More News » |