Hi All,
Here is some more good news. Evidently the federal reserve will be increasing its level of disclosure. According to a recent speech by Chairman Ben Bernake, the Fed will begin to publish quarterly economic projects.
The good news however was tempered by the content of their latest projections. The Fed’s numbers predict that 2009 will see a cut in GDP of .5 to 1.3% They also said unemployment was going to climb to 8.5 or 8.8%. (Clicky)
This is an important first for the Fed. Bernanke is responding to recent congressional and media criticism regarding the lack of transparency in nation’s central bank (1)(2). The Fed has long been a target of proponents of free markets, such as the late nobel prize winner, Milton Friedman. However, the bank has recently dumped a titanic sum – 2 trillion into the economy, upping the policy and economic stakes. Very few people understand the planning or long term rationale for this action, if indeed there is one.
So, this move is welcome from the central bank, one can only hope for more.
Click here for some basics on the Fed.
Best,
James
