More Transparency at the Fed

Last week, the Federal Reserve released blank templates showing the format of the two charts it will use on January 25 to report Federal Open Market Committee (FOMC) participants' projections of the appropriate target federal funds rate. It also released a draft of an explanatory note that will accompany the projections.

Link to FRB Press Release:  http://www.federalreserve.gov/newsevents/press/monetary/20120120a.htm

This is particularly interesting given the recent disclosure of how far off the mark the FOMC members were in 2006, when they completely failed to understand the approaching Great Recession.  

Link to article:  http://www.nytimes.com/2012/01/13/business/transcripts-show-an-unfazed-fed-in-2006.html?pagewanted=all

Rather than having to wait 5 years, we will have access to more information about FOMC deliberations in real time.  The form still does not provide the whole story, but it is a step toward greater transparency.

(ag) Jan. 23, 2012, in Economy, Economy/Interest Rates