Mester expects the Fed to consider communications as part of its next monetary policy framework review

Cleveland Federal Reserve President Loretta Mester participated in a panel discussion titled “Policy Panel Discussion” at the Bank of Japan (BoJ) – Institute for Monetary and Economic Studies, in Tokyo, on Tuesday.

Key quotes

Would be preferable for FOMC statements to use more words to describe current assessment of economy, how that influences the outlook, and the risks to that outlook.

Scenario analysis should also be incorporated as a standard part of Fed communications.

Would like Fed to publish anonymized matrix of economic and policy projections so market participants can see linkage between each participant’s outlook and their view of appropriate policy associated with that outlook.

Expect the Fed will consider communications as part of its next monetary policy framework review.