Indeed, tomorrow, I will meet with Upper Peninsula business leaders to gather exactly this kind of information. Communication is a two-way street, however. During the past century, the Federal Reserve’s communications to the public about its monetary policy actions have also evolved greatly. The pace of change was especially rapid in the eight years under Chairman Bernanke’s leadership.
So, as the Federal Reserve System plans for its second century, I would say that the importance of two-way communication is a key lesson from the System’s first century. In order for the Fed to continue to be effective, it needs to communicate its policy decisions transparently to the public. Conversely, it also needs the public’s input on how those policies are affecting them.