Central Banks
Mester Says Fed Can Better Explain Officials’ Economic Views
- Cleveland chief calls for more detail in statements, forecasts
- Bowman says Fed should continue shrinking its asset portfolio
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Federal Reserve Bank of Cleveland President Loretta Mester said the US central bank should consider ways to better communicate to the public how economic conditions will affect future policy decisions.
Speaking in Tokyo on Tuesday, Mester recommended two key changes: adding more words to the Fed’s post-meeting policy statement – to describe how officials assess economic developments and potential risks to the outlook – and more detail to its quarterly summary of policymakers’ economic forecasts.