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Commentary

Fed's New Projections Not That Useful

The Federal Reserve's newfound push for transparency is admirable, but of limited utility to most investors.

One of the hallmarks of Ben Bernanke's tenure as chairman of the Federal Reserve board has been a push for more transparency. From press conferences to more speeches to extra disclosures, Bernanke has been much more open about the Fed's operations than his predecessors. The latest chapter in this push was the publication of the Fed's detailed economic forecast and each voting member's expectations for the future path of interest rates.

It's certainly hard to argue against greater openness about what the Fed is doing, but the actual utility of these moves to individual investors is, at best, limited.