Transparency in Federal Reserve policy
A) is a relatively recent phenomenon that tends to mitigate uncertainty in financial markets and leads to more effective monetary policies.
B) is a relatively recent phenomenon that tends to exacerbate uncertainty in financial markets and leads to less effective monetary policies.
C) has been in place since the Federal Reserve was formed.
D) has never been a hallmark of U.S. monetary policy.

Question

Quizplus · Accepted Answer

Transparency in Federal Reserve policy has become increasingly important in recent years, with the Fed providing regular updates on its decisions and communicating its intentions to the public. This has helped to reduce uncertainty in financial markets, making it easier for investors to make informed decisions and for the Fed to implement more effective monetary policies. While transparency has not always been a hallmark of U.S. monetary policy, it has become increasingly important in recent years.

Transparency in Federal Reserve Policy