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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (54668)	2/24/2006 4:06:41 PM
From: ild	Respond to of 110194

DJ Poole: Policy Adjustments Should Be In 25 BP Increments DJ Fed's Poole: FOMC Statement Should Be More Stylized DJ Fed's Poole: Transparency Is More Than 'Opening Up' DJ Poole: Fed Needs To Clearly Transmit Information *DJ Poole: Communications Should Promote Effective Policy DJ Fed Poole: Communications Should Promote Effective Policy NEW YORK (Dow Jones)--Federal Reserve Bank of St. Louis President William Poole said Friday that a transparent Fed is one that communicates its goals effectively. Adopting a more stylized policy statement, limiting rate adjustments to quarter-point increments, and not surprising the market with between-meeting moves are all ways to enhance Fed transparency, Poole said. "The Fed needs a conscious communications strategy rather than a strategy of simply 'opening up,"' he said in a speech to the St. Louis Forum, an association of women executives in St. Louis. Poole didn't comment on the near-term outlook for monetary policy or the economy in his prepared remarks. He emphasized two goals for the Fed's communications strategy. "First, the Federal Reserve, as a creature of Congress, clearly has to be politically accountable, " Poole said. "We need to be responsive to questions from Congress and the public at large." The second goal is to make monetary policy more effective. '"From the Fed's viewpoint, policy effectiveness will be enhanced when the market has a complete and accurate understanding of the Fed's goals and policy processes," said. Poole isn't a voting member of the interest-rate setting Federal Open Market Committee this year. DJ Fed Poole:Communications Should Promote Effective Policy-2 Effective communication can be challenging, Poole said, and one of the areas the Fed can improve upon is in the language it uses in FOMC statements, which he says should be "more stylized." "A stylized statement might be dull, but the market will search for meaning whenever the statement changes. If we want changes to have clear meaning, we need to form statements from stock phrases that have been explained before," Poole said. He also suggested that the FOMC should adopt a policy of adjusting rates only at regularly scheduled meetings, unless there was a compelling reason to act otherwise. In addition, Poole recommended that policy adjustments should be limited to 25-basis-point increments unless there were extenuating circumstances that would justify a larger move. "Over the past decade, the market has been able to predict FOMC policy adjustments with considerable accuracy," Poole said. He called his suggestions "minor refinements" to what is currently in place. -By Shayna Stoyko, Dow Jones Newswires; 201-938-2137; shayna.stoyko@dowjones.com

To: ild who wrote (54668)	2/24/2006 4:13:20 PM
From: michaelrunge	Respond to of 110194

DJ Fed's Poole Says US Economy Is Not Fragile (it's really, really, really fragile) DJ Fed's Poole Says 'Very Sustained Expansion In Place' (in the monetary measures) DJ Fed's Poole Says 'Rates Are About Where They Need To Be' (somewhere on the planet, just not here) DJ Fed's Poole: More Firming May Be Necessary (of Americans' posteriors) DJ Fed's Poole Says US 'Pretty Close To Full Employment' (for real estate agents, mortgage brokers, home inspectors) DJ Fed's Poole Says Inflation Expectations 'Firmly Held' (that it's incorrectly measured, understated, and headed higher) Sorry, I couldn't resist...