The Federal Reserve is on a real transparency kick, as evidenced by its recent move to speedily release ill-edited transcripts of its December deliberations. Now, however, we have Fed Governor Donald Kohn saying in weekend comments that the Fed is considering steps toward even more transparency. One wonders what’s left, a Fed-Cam? I shudder to think.
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Gotta love the Fed, for four years they have succesfully delayed the necessary rebalancing and resolution to the largest equities bubble in history with the largest credit bubble in history. I just love the not-too-userful but still amusing anecdote that the US economy grew faster before the Fed existed than post Fed. People still haven’t learned that you can’t manipulate markets succesfully as a matter of policy….
In his speech at the AEA annual meeting a year ago, Fed Governor Bernanke resisted the notion of a “Fed-Cam” … “Other possibilities for improved transparency may exist. Importantly, as we think about these, we should not simply take the view that more information is always better. Indeed, irrelevant or badly communicated information may create more noise than signal; and some types of information provision–an extreme example would be televising FOMC meetings–risk compromising the integrity and quality of the policymaking process itself.” (source: http://www.federalreserve.gov/boarddocs/speeches/2004/200401032/default.htm)