But there is more to it than that. Jon Faust’s paper captures well the framers’ vision of an institutionalized diversity of perspectives. In my view, the public expression of our diverse views helps sustain public support for the Federal Reserve as a public institution.
Those members of the public who disagree with our policy should know that their concerns are given voice in our deliberations. But there is a tradeoff here that needs to be managed: On the one hand, the effectiveness of policy is thought to depend on the public’s understanding of the Committee’s consensus.