AS YOU KNOW, I AM AMONG THOSE WHO BELIEVE THE FEDERAL RESERVE’S COMMUNICATION APPROACH, INCLUDING FORWARD GUIDANCE, NEEDS SERIOUS REFORM.

IN THE TRADITIONAL WORLD OF CENTRAL BANKING, THIS WOULD INVOLVE A COMMITTEE SOLICITING INPUT, INCLUDING CONSIDERING OTHER CENTRAL BANKS' APPROACHES, AND SECURING BROAD BUY-IN.

What changed

AS YOU KNOW, I AM AMONG THOSE WHO BELIEVE THE FEDERAL RESERVE’S COMMUNICATION APPROACH, INCLUDING FORWARD GUIDANCE, NEEDS SERIOUS REFORM. IN THE TRADITIONAL WORLD OF CENTRAL BANKING, THIS WOULD INVOLVE A COMMITTEE SOLICITING INPUT, INCLUDING CONSIDERING OTHER CENTRAL BANKS' APPROACHES, AND SECURING BROAD BUY-IN. THEN COMES THE QUESTION OF WHAT TO DO IN THE INTERIM. ONE OPTION IS TO MAINTAIN THE STATUS QUO. ANOTHER IS TO MAKE THE "DOT PLOT" OPTIONAL FOR FOMC MEMBERS AND SEE HOW LONG IT TAKES FOR

Why it matters

IN THE TRADITIONAL WORLD OF CENTRAL BANKING, THIS WOULD INVOLVE A COMMITTEE SOLICITING INPUT, INCLUDING CONSIDERING OTHER CENTRAL BANKS' APPROACHES, AND SECURING BROAD BUY-IN. THEN COMES THE QUESTION OF WHAT TO DO IN THE INTERIM. ONE OPTION IS TO MAINTAIN THE STATUS QUO. ANOTHER IS TO MAKE THE "DOT PLOT" OPTIONAL FOR FOMC MEMBERS AND SEE HOW LONG IT TAKES FOR