What is the Fed Feeding us? Truth or Lies?

Communication is key. The Fed didn’t always understand that, but over the years they’ve learned that communication and transparency are important to anyone affected by their policy decisions.

Before the early 1990s, the Fed didn’t even announce when they had made a policy change. That made it much more difficult for Fed watchers to decipher what they did, much less what their intentions were.

In past Fed minutes, former Fed chair Alan Greenspan joked about increasing transparency in policy announcements, and the lack thereof in their participation in the coupon market. Another Fed official joked: “The more transparent you get, the more everybody wants.”

But today, the Fed is