Everyone seems to be blaming Federal Reserve Chairman Ben Bernanke for bringing volatility back to the markets when he opened his mouth at last week’s post-FOMC meeting press conference.
However, Bernanke and the Fed began holding these press conferences in 2011 for the benefit (or to the detriment) of everyone.
“While the Fed has been around for a long time (it was created 100 years ago), the Fed’s communications on monetary policy have a much shorter history,” said LPL Financial’s Jeff Kleintop. ” In fact, it was really only in the 1990s when the Fed’s actions became transparent to market participants.”
In his weekly commentary, Kleintop rounded up nine changes the Fed made in its effort to improve its communications with the public.
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