All of the following have enhanced the Fed's credibility in conducting monetary policy except

Question

Quizplus · Accepted Answer

Discontinuing the policy of announcing whether it considered the economy to be at greater risk of inflation or recession following each FOMC meeting would not have enhanced the Fed's credibility in conducting monetary policy. This policy was actually discontinued because it was perceived as creating confusion and uncertainty among financial market participants. The other options listed (A, B, and C) have contributed to the Fed's credibility by increasing transparency and accountability in its monetary policy decisions.

All of the Following Have Enhanced the Fed's Credibility in Conducting