Transparency of the Federal Reserve

Author: Nishant Sheth

We have all heard of actions taken by the Federal Reserve ever so often, through the news or other media.  They wield strong influence of the American economy. This is in terms of monetary policy and the financial system as a whole. However, many argue that our society is not well informed enough about what goes on behind the scenes. Ben Bernanke has tried to push for opening up the Federal Reserve and exposing to people why certain decisions are made, especially after the recent financial crisis. One example, of odd uses of time is the fact that the Fed met with Wall Street Bank’s at least 40 times while provision the recent Volcker Rule. However, they met with the Organization American’s for Financial Reform, only 3 times.  This is clearly stark difference, and people opposed to reform are having a much easier time getting meetings with the Fed then those in support of reform. The Fed is only hearing out certain groups of people selectively and not keeping others in the loop. They say they are gaining a diverse perspective but are not really backing that up. What do you guys think on the Fed’s transparency? Do you feel that they need to have a more vocal approach to what is going on behind the scenes?

NY Times Article: http://economix.blogs.nytimes.com/2012/02/23/opening-up-the-fed/?ref=economy