Federal Reserve to increase openness

28 December 2011

The central banking system of the US is attempting to increase openness with regard to its internal operations - and this drive could see it double press briefings.

Chairman of the Federal Reserve Ben Bernanke may implement the changes in an effort to help improve understanding of policy alterations, Bloomberg reports.

According to economists with knowledge on the matter, these could include signalling interest rates will remain close to zero for a longer period of time.

Sam Bullard, senior economist at Wells Fargo Securities, explained that adding extra briefings "is a viable option because Bernanke has been an effective communicator" when it comes to policy aims.

Diane Swonk, chief economist in Chicago at Mesirow Financial, added: "You can get a forecast that implies a fed funds rate low well into mid-2014 given their current forecast."

Mr Bernanke took up a second term as chairman of the board of governors of the Federal Reserve in February 2010 and also serves as chairman of the Federal Open Market Committee.

By Asim Shah

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