Oct. 20 (Bloomberg) -- Federal Reserve Bank of Minneapolis President Narayana Kocherlakota said effective central bank policy requires “clear communication” with the public.
“The Federal Open Market Committee, under the leadership of Chairman Ben Bernanke, has made communication a top goal,” Kocherlakota said today in a speech in Minneapolis. “I am on record as strongly supporting this initiative.”
Fed officials are considering ways to give more information about the central bank’s long-run economic goals and the circumstances under which interest rates will remain close to zero, minutes of their September meeting showed. Kocherlakota, who has dissented from each of the past two FOMC decisions, did not comment on the outlook for monetary policy or the economy in his prepared remarks.
“Effective policy implementation requires public support and, therefore, public understanding,” Kocherlakota, 48, said in the text of his speech to the Minnesota Council on Economic Education. “Public understanding of policy decisions, in turn, requires clear communication between policy makers and the public.”
--With assistance from Chris Newmarker in Minneapolis. Editors: Scott Lanman, Kevin Costelloe
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