Charles Plosser of the Philadelphia Fed gave a noteworthy speech today on how the US central bank might improve its communication policies.
Mr Plosser has always been interesting on this subject — he is a long time advocate for a defined Fed inflation objective — but he is especially worth paying attention to now as a member of the Fed subcommittee that is looking at communications.
Mr Plosser is the obvious ‘hawk’ on that committee — the other members are vice chair Janet Yellen, governor Sarah Bloom Raskin, and Chicago Fed president Charles Evans — and its clear that there is a lot of common ground on inflation objectives and on providing more information about the forward path of policy. Read more
The Treasury select committee’s review of Bank of England governance is out today. Here are some initial thoughts on some of its recommendations.
Recommendation: The Court of the Bank of England should be transformed into a smaller, more expert Supervisory Board with its own staff. It should decide on the allocation of resources among the Bank’s different areas of work and its minutes should be published. The Supervisory Board should have the power to conduct and publish retrospective reviews of Bank policies and conduct, the report concludes.
If the evidence sessions have highlighted one thing, it is that the court is ill equipped to perform the duties expected from a board of directors of a central bank. Read more