“Among ideas being considered to create more openness: more news conferences with Chairman Ben Bernanke, who last week had a rare question-and-answer session with reporters. But attempts to increase transparency should go beyond monetary policy to include bank supervision.
Consider stress tests the Federal Reserve is conducting to decide if big banks can return capital to shareholders. The tests aren’t as open as those done in 2009. Then, the Fed and Treasury gave benchmarks they would use to gauge banks’ capital strength, like scenarios for shifts in house prices and unemployment.
This time, the Fed hasn’t disclosed parameters. Nor has it indicated how much or what type of information it may release following the tests.” Read more.
“Time For Fed to Step Up Its Transparency”
Wall Street Journal, February 7, 2011.
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