Central Banks' Communication Conundrum: Saying Enough, Not Too Much
The art of communication for central banks is a delicate one. They must strike a balance between transparency and vagueness, sharing enough information to inform markets without revealing too much.
This was highlighted in a recent discussion at The Economist, where the issue of how much central banks should talk was explored.
A trader works on the floor of the New York Stock Exchange (NYSE) while screens broadcast a press conference by U.S. Federal Reserve Chair Kevin Warsh.