Neal Lipschutz, the managing editor of Dow Jones Newswires, writes that the Federal Reserve is considering holding news conferences, which would dramatically change how the central bank is covered.
Lipschutz writes, “Back to the press conference idea. They should be more frequent than simply occasional, the theoretical time frame mentioned in the minutes. The Fed is a mystery to most people. Some think such economic power in the hands of independent and unelected officials is out of step with democratic institutions. Bernanke press conferences would help demystify the Fed and make it more democratic.
“Like it or not, The Fed and its policies already are fodder in the political arena. The latest bond-buying plan to stimulate the economy earned the ire of a number of Republican lawmakers. In the run-up to new financial services regulation, a Democrat-controlled Congress mulled clipping the Fed’s regulatory wings and threatened its monetary policy independence. Nothing ultimately happened there (the Fed got increased regulatory powers).
“But clearly, there have been politics surrounding the Fed on both sides of the aisle.
“Press conferences could help by increasing the Fed’s standing with the public, or some interested portion of it. If you wind up in Rome, do as the Romans do. Find a lectern and state your case. Take on the questions and defend your positions. Get your sound bites distributed far and wide.”
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