Key Charts - Bank Regulation
Markets Are Poorly Served by Fed Communication Strategy
- Over time, FOMC statements have grown longer and more complex, increasing from around 200 words each during the 1990s to nearly 1,000 words apiece last year.
- Under current Fed Chair Janet Yellen, statement length has dropped somewhat, but remains significantly longer than a decade ago.
- Given that recent FOMC statements have caused some amount of market volatility, the Fed would do best to consider revising and streamlining its communications strategy. Read corresponding blog entry.
Sources: The Federal Reserve, Milken Institute.