Fed policymakers should put less emphasis on short-term outlook for rate hikes: Powell
Federal Reserve policymakers should put less emphasis publicly on the short-term outlook for interest rate increases and more on the economics driving monetary policy and the uncertainty of forecasts, Fed Governor Jerome Powell said on Wednesday.
In comments at a Brookings Institution forum on Fed communications, Powell said that a diverse set of views at the Fed, with 12 regional bankers and a Washington-based board who set their own public speaking schedules, helps strengthen the democratic framework of the central bank.br>
But he said the now frequent speeches by Fed officials have led to too much emphasis on the timing of the next rate increase, de-emphasized the primary influence of the Fed chief in setting policy, and underplayed the amount of uncertainty facing the central bank.br>
The Fed under its former chairman, Ben Bernanke, started putting more emphasis on public communications, but proliferation of speeches has led some to regard the central bank’s approach as confusing.br>
