Narayana Kocherlakota on Optimal Fed Communication

Chair Warsh has communicated very little at his first two press conferences, aiming to increase policy flexibility and free markets to “play the ball, not the referee.” This is a marked change from his predecessors who viewed frequent communication as a form of transparency and helpful guidance. Some of Warsh’s desired reforms, however, are subject to FOMC approval and cannot be implemented unilaterally. In this episode, we talk with Narayana Kocherlakota, former President of the Minneapolis Federal Reserve, about how the Fed approached communication through the GFC, the process for reforming FOMC procedures, and the optimal balance between monetary policy flexibility and guidance.

Simply Put: Expert perspectives on the trends influencing fixed income, banking, and the macro landscape, hosted by FHN Financial’s Macro Strategist, Will Compernolle. Tune in to better understand what’s moving the markets and what to keep an eye on in the weeks and months ahead. Listen and subscribe wherever you get your podcasts.