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WSJ: New Fed Communication Strategy

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From Jon Hilsenrath and Luca Di Leo at the WSJ: Federal Reserve Prepares to Make Itself Perfectly Clear

The Fed has been working on revamping its communication strategy for months. … Informally, the Fed already has made clear it wants the annual inflation rate to run at 2% or a bit lower over the long-run. A formal statement would codify the commitment. Such a declaration would likely run alongside a description of the Fed’s goals for employment, which Congress requires it to mind along with inflation. Most Fed officials believe the unemployment rate could fall to 5% or 6% without triggering higher inflation.

To articulate its interest-rate strategy, the Fed would expand its quarterly release of the officials’ projections for economic growth, inflation and unemployment. It would add details on the Fed’s interest rate expectations underlying its economic projections, along with some description of the policy it expects to employ to reach its goals.

I think this would be helpful.

Yesterday:
• Summary for Week ending Dec 2nd
• Schedule for Week of Dec 4th




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