Implications for central bank communication So far I have discussed why central bank communication is important for financial market efficiency and good macroeconomic performance, and I have presented a few pieces of evidence that suggest that asymmetry of information between the Federal Reserve and the public may be an important phenomenon. What implications does all this have for the communication policies of the Fed?
In an ideal world, the Federal Reserve would release to the public a complete specification of its policy rule, relating the FOMC's target for the federal funds rate to current and expected economic conditions, as well as its economic models, data, and forecasts.