Archive for March 15th, 2011

Fed Needs To Factor Breaking News Into Post-Meeting Statements

Posted by Neal Lipschutz on March 15, 2011
Central Banks, Economy, Federal Reserve, Japan, United States, Wall Street, Washington / Comments Off

The Federal Reserve has a committee studying how to improve communications with the public. But change was not in evidence in the latest statement issued today following the rate-setting meeting of the central bank.

In a bid to be more open with investors and the general public, the Fed should adopt a less stilted post-meeting announcement of its rate decision. Sure, each word the Fed utters must be carefully chosen because each word will be subject to over-the-top analysis by market types and analysts. But still, the Fed should indicate it doesn’t live in a cave.

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