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MNI BRIEF: Too Much Fed Talk Could Be Ineffective -Jefferson

(MNI) WASHINGTON

Fed Vice Chair does not comment directly on monetary policy.

The diversity of views among Federal Reserve officials could be confusing and contribute ineffectively to the transmission of monetary policy, Fed Governor Philip Jefferson said Monday, calling for more research into the topic. He made no comments on the economic or policy outlook.

"The diversity of viewpoints among policymakers lends itself to stimulating debates and, ultimately, better policy. But in such a situation, more communication could increase rather than reduce uncertainty about our policies," he said in opening remarks for a Cleveland Fed conference on central bank communications. "We stand to benefit a lot from more research in this area." (See: MNI: Fed Messaging Swings Boost Policy Volatility-Ex-Officials)

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The diversity of views among Federal Reserve officials could be confusing and contribute ineffectively to the transmission of monetary policy, Fed Governor Philip Jefferson said Monday, calling for more research into the topic. He made no comments on the economic or policy outlook.

"The diversity of viewpoints among policymakers lends itself to stimulating debates and, ultimately, better policy. But in such a situation, more communication could increase rather than reduce uncertainty about our policies," he said in opening remarks for a Cleveland Fed conference on central bank communications. "We stand to benefit a lot from more research in this area." (See: MNI: Fed Messaging Swings Boost Policy Volatility-Ex-Officials)