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Fed chairman Ben Bernanke is due to speak on the economic outlook and federal budget situation on Thursday. He’s up in front of the House Committee on the Budget at 10.00 local time (15.00 GMT) on Thursday.
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.
Two of the three FOMC dissenters on Wednesday said why they broke ranks at last week’s meeting.
Aside from their view that the conditional commitment to keep rates on hold until 2013 looked suspiciously like the Fed was trying to buoy financial markets, there was another common strand to their discord.
Both Mr Fisher and Mr Plosser claimed monetary policy was limited in what it could do to spur growth. This is becoming a popular argument among senior central bankers.