Reuters - Video

EDITION: U.S. | U.K. | IN

Video

Bernanke steps into the spotlight

Tuesday, Apr 26, 2011 - 02:13

Apr 26 - Federal Reserve Chairman Ben Bernanke prepares to go where no sitting Fed chief has gone before - a live regularly scheduled press conference, but some experts say more transparency could cloud the Fed's message. Karina Huber reports.

▲ Hide Transcript

View Transcript

The Fed is changing its policy not monetary policy but its approach to the public. For the first time ever at the chairman of the Federal Reserve will hold a question and answer period after its policy setting meeting on Wednesday. Bernanke will do this four times a year in a dramatic shift towards more transparency. The Central Bank has used every tool in its bag of tricks to kick start the US economy slashing interest rates to near zero. And buying government bonds and other assets but unemployment remains high in the US and there are worries about inflationary pressures that that's news have come under scrutiny. Clark winter president of Clark winter enterprises. So think they haven't made a case. To a lot of the a lot of people blame them for the problems which is interest and so they have to get out make their case let it be known as I say it's just like investor relations they want people -- understand what they're really doing. It is not clear how much more information acuity period will provide the Fed -- issues a statement following the FOMC meeting. Most believe the shift in approach is less about substance and more about perception. It could serve Bernanke well last year there was a congressional push from both Republicans and Democrats calling for the Central Bank to undergo a public audit effectively stripping it at some of the autonomy it has traditionally enjoyed. Senior economist at decision economics Kerry Leahy. That'll help the Fed when the PR game with the public and particular with congress is all the good for them to maintain themselves as an independent institution. But I don't think it's really gonna change the amount of possibilities for us speculation and markets. Fed policy has increasingly been driving markets as a result investors comb through every word uttered by the Fed looking for clues. With the new -- period experts believe they're ever expression will now be analyzed as well. As the Central Bank pushes for more transparency. The message might actually be clouded as investors will be provided with more cues to speculate on -- ever before. In New York I'm orders reporter critics Huber higher.

Bernanke steps into the spotlight

Tuesday, Apr 26, 2011 - 02:13

Top News »

The Exchange »

Moving Pictures »