Editorial Board
Fed’s Communications Should Reflect an Uncertain World: View
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The U.S. Federal Reserve is planning to the way it communicates with the public. The aim, as we understand it, is to explain better what the central bank is trying to do when, say, it prints hundreds of billions of dollars in hopes of moving interest rates a few tenths of a percentage point.
This is an excellent idea, as long as the practice doesn’t inadvertently give investors a false sense of security.