Fed's Musalem Says Delegated Power Over Interest Rates Also Obligates The Fed Too Explain How And Why That Power Is Used; If The Public Understands The Framework, Private Expectations LINE Up With The Fed's Intentions, Improves Trade-offs Between Inflation And Employment; A Predictable, Explained Framework, Is Part Of What Makes A Central Bank Democratically Legitimate
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Why It Matters
The Fed is saying it must explain its decisions to the public clearly. When people understand why the Fed changes interest rates, the economy works more smoothly.
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Source: Benzinga · Read the original report at the publisher. Headline and figures shown for context; data may be delayed.
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