For example, the Bank does not officially use the term “forward guidance” to describe its communication strategy, but it could be regarded as such. Essentially, forward guidance is aimed at enhancing the effectiveness of monetary policy. It can be classified into two types depending on the objective.
We’ve held many Fed Listens events over the past 16 months, and it’s important to note that these conversations aren’t just a nice way to talk to people from around the country, although they are that. What they provide—what you provide—is insight that we just can’t get anywhere else.