United States Federal Reserve Vice Chair Philip Jefferson emphasized on Monday the importance of effective communication in monetary policy, detailing the various channels the Fed uses to inform the public, including regular FOMC statements, minutes, and press conferences.
"To fulfill our dual mandate of promoting maximum employment and price stability, we need to formulate good policies and to make sure that our policies are clearly understood. Doing so helps make monetary policy more effective," Jefferson said in a speech at the "Central Bank Communications: Theory and Practice" conference hosted by the Federal Reserve Bank of Cleveland, Ohio.
He also touched on the historical development of these practices, noting significant changes since the 1990s that have led to greater transparency and accountability.
