April 26, 2011
- in Uncategorized by schooloftrade
Fed Chairman Press Conference FOMC
| Definition The Fed announced on March 24, 2011 that Fed Chairman Ben Bernanke will hold press briefings four times a year to explain the FOMC’s latest quarterly economic projections. The purpose of the briefings is to provide additional context for the FOMC’s policy decisions and to allow for Q&A with the press. According to the Fed, the “introduction of regular press briefings is intended to further enhance the clarity and timeliness of the Federal Reserve’s monetary policy communication.” The press briefing is held at 2:15 p.m. ET on the days of FOMC statements in which quarterly projections are released. On those statement days, the FOMC statement will be released at 12:30 p.m. ET instead of 2:15 p.m. ET for when statements are released for other FOMC meetings during the year. | |
The Fed’s meeting statement and economic projections can move financial markets. However, the Fed’s meeting statement, which indicates any changes in monetary policy, typically is very concise and lacking in detail. Also, there are no specifics about the Fed’s quarterly economic forecasts at the time of the statement release. Written details regarding the policy decision and the forecasts are not available until three weeks after the FOMC meeting when the meeting minutes are released. The chairman’s press conference allows for the financial markets and public in general to learn more about why and how the monetary policy decision was made and to learn more about FOMC views on the direction of the economy, including real growth, inflation and unemployment. On the days in which the FOMC puts together its economic forecasts, there is a double opportunity for the Fed to move markets, at 12:30 p.m. ET when the statement is released and at 2:15 p.m. ET when the Fed chairman begins his press conference (and until the end of Q&A). |
