1 Today I will share my own views on the Federal Open Market Committee’s (FOMC) public communications, which are designed to serve three important purposes. The first is to provide the transparency that enables the Congress and the public to hold the Committee accountable for its decisions on monetary policy. The second is to enhance the effectiveness of monetary policy.
If the public understands the central bank’s views on the economy and monetary policy, then households and businesses will take those views into account in making their spending and investment plans; policy will be more effective as a result.